Kutch: Tata Power’s 4,150 MW ultra-mega thermal power plant in Mundra, which has remained idle since July, is expected to resume operations by the end of this year. The company is reportedly close to signing a supplementary power purchase agreement (PPA) with the Gujarat government, its primary power buyer, according to media sources.

The resumption plan is under discussion following an in-principle understanding with the Gujarat government, news reports said. Supplementary PPAs with other buyers are expected to follow soon after. The Mundra plant, which runs on imported coal, supplies electricity to Gujarat, Rajasthan, Maharashtra, Haryana, and Punjab. This facility accounts for roughly a quarter of Tata Power’s total generation capacity.

Notably, under existing PPAs, Tata Power cannot pass on higher imported coal costs to consumers. However, during high demand or shortages, the government can invoke Section 11 of the Electricity Act to direct plants to run at full capacity, allowing cost recovery. Section 11 had been applied repeatedly since May 2022 but was not extended from July this year due to an early, prolonged monsoon, causing the Mundra plant to shut down.

During the second-quarter results call, management had indicated that it was seeking a long-term resolution rather than relying annually on Section 11, with hopes of finalizing it by the end of November. DeshGujarat