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Tata Power has moved a step closer to reviving operations at its Mundra Ultra Mega Power Project in Gujarat by signing a supplementary power purchase agreement with Gujarat Urja Vikas Nigam Ltd (GUVNL). The company also plans similar agreements with Maharashtra, Rajasthan, Punjab, and Haryana. The plant had been shut since July 2025 due to financial losses, impacting power supply to multiple states. With regulatory approvals already in place, these agreements are expected to improve viability and help restart operations. The development also had a positive impact on Tata Power's share price.
Tata Power has taken a key step towards restarting operations at its Mundra power plant in Gujarat by signing a supplementary power purchase agreement (PPA) through its subsidiary Coastal Gujarat Power Ltd (CGPL) with Gujarat Urja Vikas Nigam Ltd. Advertisement
The company informed in a regulatory filing that similar agreements are expected to be signed with Maharashtra, Rajasthan, Punjab, and Haryana. These states are among the key beneficiaries of power generated from the Mundra plant.
The company stated that following the temporary suspension of operations at its Mundra units, it has now executed a supplementary PPA for the plant with GUVNL and will complete similar agreements with other states as well. This move is aimed at addressing operational and financial challenges that had forced the shutdown.
Operations at all units of the Mundra plant were suspended in early July 2025 due to sustained financial losses. The closure had impacted Tata Power's overall performance, as the plant is one of India's largest private thermal power facilities.
Earlier developments showed that the Gujarat cabinet had approved the supplementary PPA, and a government order had already been issued. The company had indicated that the agreement would be signed after receiving necessary regulatory clearances, which now appears to be progressing.
The Mundra Ultra Mega Power Project, located in Kutch, Gujarat, has a total capacity of 4,000 MW, with five units of 800 MW each. It is a coal-based thermal power plant supplying electricity to multiple states including Gujarat, Maharashtra, Punjab, Haryana, and Rajasthan, making it a critical part of regional power distribution.
Following this development, Tata Power's stock showed a positive movement, with shares trading at around INR 387.20 on the BSE.
Source PTI
FAQ
Q1: What recent step has Tata Power taken regarding the Mundra power plant?
Tata Power has signed a supplementary power purchase agreement (PPA) with Gujarat Urja Vikas Nigam Ltd (GUVNL) through its subsidiary Coastal Gujarat Power Ltd. This is a key step towards restarting operations at its Mundra Ultra Mega Power Project.
Q2: Why were operations at the Mundra plant suspended earlier?
Operations at the plant were suspended in July 2025 due to sustained financial losses. The shutdown affected power supply to multiple states and impacted Tata Power's overall performance.
Q3: Which states are involved in the power supply from this plant?
The Mundra plant supplies electricity to several states including Gujarat, Maharashtra, Rajasthan, Punjab, and Haryana. The company plans to sign similar supplementary PPAs with these states as well.
Q4: What is the capacity of the Mundra Ultra Mega Power Project?
The plant has a total capacity of 4,000 MW, consisting of five units of 800 MW each. It is one of India's largest private coal-based thermal power plants.
Q5: How will the supplementary PPA help Tata Power?
The revised agreement is expected to improve the financial viability of the project by addressing cost-related challenges. This will support the restart of operations and ensure stable power supply to beneficiary states.
Q6: Have the necessary approvals for the agreement been obtained?
Yes, the Gujarat cabinet had already approved the supplementary PPA and regulatory clearances have been received, enabling the company to move forward with the agreement.
Q7: What has been the market reaction to this development?
Following the announcement, Tata Power's share price saw a positive movement, with the stock trading at around INR 387.20 on the BSE, reflecting improved investor sentiment.
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