Gujarat clears new Tata Power deal to resume long‑term supply

The Gujarat government has approved a revised power ‌supply pact with Tata Power, ​clearing the way for ⁠the company to resume long-term supply from its 4-gigawatt Mundra plant, according to ‌a government document seen by Reuters.

Also Read | Tata Power to develop 100 MW solar project at Dholera, Gujarat

The imported coal-fired plant has ‌not operated for the past six ‌months ⁠after the government last ⁠year withdrew the emergency clause that compensates companies for generating power using expensive imported coal.

The ​deal comes as ‌a relief to the country as it is looking to maximise power output from its coal plants amid ‌an escalating West Asian conflict that ​is expected to lead to a gas shortage during summer.

Also Read | Country will successfully navigate the energy crisis triggered by the West Asia conflict: PM

The ⁠deal needs approval from the federal power regulator and would take effect ‌retrospectively from April 2025.

The document did not have details on the exact pricing of the power supply, but the State government has mandated that the price must not exceed ‌that paid by other States, as per ​the document.

Tata Power and the Gujarat government did not ⁠immediately respond to emails seeking comment. The power ⁠producer’s shares were up 3.3% in early trade at 411 ‌rupees at 0400 GMT in Mumbai.