Tata Power’s Mundra plant in final talks to ink supplemental PPA with Gujarat

Coastal Gujarat Power Limited (CGPL), which operates the Mundra power plant, is reportedly in talks with Gujarat Urja Vikas Nigam Limited (GUVNL) to ink a supplemental power purchase agreement (PPA) to facilitate suitable increase in power tariffs.

Earlier in July, the Gujarat government had decided to reverse its 2018 decision to amend the PPAs it signed with three producers – Tata Power, Adani Power and Essar Power – to raise the power tariffs in order to offset the rising cost of imported coal. The Gujarat government revoked its Government Resolution (GR) in this regard in view of easing coal prices in the international market. The Additional Solicitor General (ASG) had informed the central power ministry in April 2020 that the CGPL could supply power to Gujarat and Maharashtra at higher revised tariffs and continue supplying power as per tariff determined through competitive bidding process to Punjab, Rajasthan and Haryana. For the higher revised tariffs, however, a supplemental agreement has to be approved by the Central Electricity Regulatory Commission (CERC).


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