Tata Power’s Mundra Plant to Restart as Gujarat Approves New Power Deal
Gujarat has officially greenlit a supplemental power purchase agreement (SPPA) with Tata Power, clearing the way for its 4,000-MW Mundra plant to resume operations as early as next week.
By : PSUDesk
Update: 2026-03-21 06:00 GMT
AHMEDABAD — Gujarat has officially greenlit a supplemental power purchase agreement (SPPA) with Tata Power, clearing the way for its 4,000-MW Mundra plant to resume operations as early as next week. The cabinet approval, announced on March 21, 2026, aims to secure electricity supplies ahead of the peak summer demand.
Key Highlights
- Revised Terms: The new agreement updates the original 2007 contract to account for high imported coal costs, likely shifting to a coal index-based tariff.
- Operational Stability: The plant had been offline since June 2025 after the Centre withdrew special compensation for imported coal-fired units.
- Supply Impact: While the plant serves five states, Gujarat holds the largest share. The deal provides much-needed relief to GUVNL as it prepares for a projected surge in power consumption.