Tata Power Signs Supplementary PPA for Mundra Plant with GUVNL, Plans Agreements with Other States
Agreement Aims to Address Losses from Mundra Plant Suspension
New Delhi, March 24Tata Power on Tuesday announced that its subsidiary, Coastal Gujarat Power Ltd (CGPL), has signed a supplementary power purchase agreement (PPA) with Gujarat Urja Vikas Nigam Ltd (GUVNL) for its Mundra power plant.
The development was disclosed in a regulatory filing, where the company stated that similar agreements will also be executed with Maharashtra, Rajasthan, Punjab, and Haryana.
Expansion of PPAs Across Multiple States
“With reference to the temporary suspension of company operations of its units located at Mundra, we hereby inform you that the Company has executed a Supplementary Power Purchase Agreement for Tata Power Mundra Plant with GUVNL (Gujarat),” the company said in its filing.It further added that the same agreement structure will be extended to other beneficiary states, including Maharashtra, Rajasthan, Punjab, and Haryana.
Background of Mundra Plant Shutdown
Tata Power had suspended operations at all units of the Mundra plant on July 2, 2025. Since then, the company has been incurring losses due to the temporary shutdown.Earlier, the company had informed that the Gujarat cabinet had approved the supplementary PPA, followed by the issuance of a government order. The agreement with GUVNL was to be signed after obtaining necessary regulatory clearances.
Mundra UMPP Capacity and Operations
The Mundra Ultra Mega Power Project (UMPP), located in Kutch, Gujarat, is a 4,000 MW coal-based thermal power plant. It consists of five units of 800 MW each and supplies electricity to multiple states, including Gujarat, Maharashtra, Punjab, Haryana, and Rajasthan.The plant is operated by Coastal Gujarat Power Ltd, a subsidiary of Tata Power.
Tata Power Share Price Movement
Following the announcement, Tata Power’s shares turned positive and were trading at Rs 387.20 per share on the BSE.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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