Tata Power’s Mundra Plant Set to Resume Operations with Gujarat Nod.

The Gujarat government has approved a supplementary power purchase agreement (PPA) with Tata Power for its 4 GW Mundra Power Plant, clearing the path for the plant to resume operations after being idle for around nine months due to high imported coal costs.

In a statement, Tata Power said, “The Gujarat cabinet has approved the Supplementary PPA, and a Government order has been issued. After regulatory clearances, the Company and Gujarat Urja Vikas Nigam Limited (GUVNL) will sign the agreement.”

The revised PPA includes a provision for cost pass-through for coal, addressing concerns that arose after the power ministry withdrew emergency compensation for rising fuel costs. The move is expected to stabilize operations at one of the country’s largest coal-fired power plants and ensure a steady supply of electricity in the region.