Gujarat approves revised power‑supply pact with Tata Power
Change
The Gujarat government approved a revised power‑supply pact with Tata Power to resume long‑term supply from its 4‑gigawatt Mundra coal‑fired plant.
Why it matters
The Gujarat government approved a revised power‑supply agreement enabling long‑term deliveries from the 4 GW Mundra imported coal‑fired plant. The state mandated that prices under the pact must not exceed those paid by other states and provided no specific pricing details. The Mundra plant has been offline for six months after the state withdrew an emergency compensation clause for using imported coal. The agreement requires approval from the federal power regulator and is to take effect retrospectively from April 2025.
Implications
- • Restores the legal pathway to return the Mundra plant's 4 GW capacity to long‑term supply contracts.
- • Tariff receipts under the pact will be constrained by a state cap limiting prices to levels paid by other states.
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