Tata Power’s Mundra Plant Gets Special Operating Framework Extension Through September.

The Centre has extended the special operating framework for Tata Power’s Mundra thermal power plant until September 30, allowing India’s largest imported coal-based power station to continue supplying electricity under government directions for another three months.

Tata Power informed stock exchanges on Tuesday that the Ministry of Power has extended the validity of earlier directions governing the plant’s operations. The previous framework was set to expire on June 30, 2026. The extension underscores the government’s continued reliance on imported coal-based generation to help ensure adequate electricity supply and maintain grid stability amid rising demand.

The 4,000-MW Mundra power plant, operated by Tata Power subsidiary Coastal Gujarat Power Ltd (CGPL), supplies electricity to multiple states including Gujarat, Maharashtra, Rajasthan, Haryana and Punjab.

The facility has long faced viability pressures due to fluctuations in global coal prices, as it operates on imported coal while supplying power under long-term tariff arrangements discovered through competitive bidding.

To address these challenges and sustain operations, CGPL has entered into supplementary power purchase agreements (PPAs) with procurers such as Gujarat Urja Vikas Nigam Ltd (GUVNL). These agreements provide an updated commercial framework for procurement from the plant and aim to better align tariffs with higher imported fuel costs, supporting continued operations at the station.