New Delhi: Tata Power on Wednesday announced the restart of operations at its Mundra thermal power plant, nearly nine months after suspending generation across all units. “With reference to the temporary suspension of company operations of its units located at Mundra, we hereby inform you that the company has resumed its operations at Mundra Plant with an installed capacity of 4,150 MW,” the company said in a regulatory filing.
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The plant had been shut since July 2, 2025, with the company incurring losses during the period of non-operation.
The restart comes after movement on supplementary power purchase agreements (PPAs) tied to the project. Tata Power had earlier informed exchanges that its subsidiary Coastal Gujarat Power Ltd (CGPL), which operates the Mundra facility, signed a supplementary PPA with Gujarat Urja Vikas Nigam Ltd (GUVNL).
The company is also required to finalise similar agreements with Maharashtra, Rajasthan, Punjab and Haryana—states that are beneficiaries of the plant’s output.
Earlier, the Gujarat cabinet had cleared the revised PPA framework, followed by the issuance of a government order, enabling the process to move forward.
The Mundra Ultra Mega Power Project, located in Kutch, Gujarat, is a coal-based plant with five units of 800 MW each, supplying electricity to multiple states including Gujarat, Maharashtra, Punjab, Haryana and Rajasthan.
Operated by CGPL, the project is among imported coal-based plants that have faced financial strain due to cost and tariff mismatches, leading to periodic shutdowns. Gujarat accounts for roughly half of the power procured from the plant.
The restart also aligns with the Centre’s directive requiring imported coal-based plants, including CGPL, to operate at full capacity between April 1 and June 30, 2026. The direction was issued under Section 11 of the Electricity Act to prevent supply shortages during peak summer demand, which is projected to reach 270 GW.
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The power ministry has said the measure is aimed at ensuring adequate electricity availability in view of rising consumption and tight demand-supply conditions.
