Indian government has ordered Tata Power’s 4-gigawatt imported-coal power plant in Mundra, Gujarat, to operate at full capacity from April 1 to June 30 to meet higher summer power demand.
The directive comes under Section 11 of the Electricity Act. It requires the plant to run at maximum output to ensure enough electricity is available on the grid.
The Mundra plant, run by Tata Power’s subsidiary Coastal Gujarat Power Limited, uses imported coal. It has five units of 800 MW each, for a total capacity of 4,000 MW. The facility has been idle for the past six months after the government ended a special compensation clause for expensive imported coal.
A recent supplementary power purchase agreement with Gujarat Urja Vikas Nigam Limited now allows the plant to restart long-term supply. The Gujarat government approved this deal earlier this month. It needs final clearance from the central power regulator.
The central government’s order aims to boost generation from imported coal plants amid expected high demand and possible gas shortages due to global events.
A government notice stated that generation from imported coal-based plants needs to increase to ensure adequate power availability.
Tata Power has indicated it will soon operate the Mundra plant at full capacity. The company is also in talks with other states like Maharashtra, Rajasthan, Punjab, and Haryana for similar agreements.
This step helps address summer peak demand, which often rises sharply in India due to heat and increased use of cooling systems.
Tata Power is a major player in India’s power sector. It handles generation, transmission, and distribution. The company has a total operational capacity of over 16,000 MW, including thermal, renewable, and other sources. The Mundra plant forms a key part of efforts to support grid stability during high-demand periods, even as the sector shifts toward cleaner energy options.
