Tata Power restores full 4,150 MW operations at Mundra plant

Tata Power has resumed operations at its Mundra thermal power plant, restoring the full installed capacity of 4,150 MW, the company informed stock exchanges. The plant had been under temporary suspension.

The resumption follows the formal execution of a Supplementary Power Purchase Agreement (SPPA) with Gujarat Urja Vikas Nigam Limited (GUVNL), as reported earlier by Power Peak Digest. The revised SPPA structures fuel costs as a pass-through arrangement, resolving the core financial obstacle that had rendered operations unviable. The plant had been accumulating significant cash losses, running at several hundred crore rupees annually, primarily due to unrecovered fuel costs.

Identical agreements are set to be executed with procurers in Maharashtra, Rajasthan, Punjab, and Haryana, which would bring the plant’s full allocated capacity back under long-term contracts across multiple states.

The restart comes ahead of peak summer demand. Tata Power had confirmed to stock exchanges on March 20 that a government order had been issued, with formal signing to follow once remaining regulatory clearances were in place.