MUMBAI: After a nine-month shutdown, Tata Power on Wednesday resumed operations at its Mundra power plant in Gujarat, which had been idled due to financial strain caused by a surge in imported Indonesian coal prices and the expiry of govt subsidies under Section 11 on June 30, 2025.
The 4,150 MW facility, India’s third-largest, was awarded to the company in Dec 2006. The restart follows the signing of a supplementary power purchase agreement with the Gujarat government, designed to restore the plant’s economic viability by allowing fuel cost pass-throughs instead of the original fixed-price structure. After the plant shut down on July 2, 2025, expenses continued to accumulate without corresponding revenue, resulting in a loss of Rs 800 crore for the unit in the first nine months of fiscal 2026.
