Ahmedabad: The Gujarat government has approved a revised power supply agreement with Tata Power, allowing the company to resume long-term electricity supply from its 4-gigawatt Mundra plant, according to a report by news agency Reuters.

As per the news report, the imported coal-based Mundra power plant had remained shut for the past six months after the government withdrew the emergency provision that allowed power producers to recover higher costs incurred due to expensive imported coal.

The revised agreement is expected to help boost electricity generation at a time when India is trying to maximise coal-based power output amid concerns of a possible gas shortage during the summer due to the ongoing conflict in the Middle East, the report said.

The agreement will come into effect retrospectively from April 2025, subject to approval from the central power regulator. It is also learnt that Gujarat has directed that the tariff for the power supply should not exceed the rate being paid by other states. DeshGujarat