The company has already signed the revised SPPA with Gujarat and expects Punjab, Haryana and Rajasthan to conclude negotiations by August, followed by Maharashtra in September,
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Tata Power expects to conclude supplementary power purchase agreements (SPPAs) for its 4,000-MW imported coal-based Mundra power plant with a majority of the five beneficiary States before September 30, with the company saying that once most procuring States sign the revised agreements, the framework will become applicable to the remaining States as well.The company has already signed the revised SPPA with Gujarat and expects Punjab, Haryana and Rajasthan to conclude negotiations by August, followed by Maharashtra in September, Tata Power Managing Director and CEO Praveer Sinha said after announcing the company’s June-quarter results on Monday. “Mundra SPPA was finalised with Gujarat. The SPPA is in a very advanced stage of finalisation with Punjab, Haryana and Rajasthan and we expect that within August we should be in a position to conclude them. Then we will be finalizing with Maharashtra in September,” Sinha said, adding the SPPAs with other States are similar to one executed with Gujarat.“That is the timeline that we are looking at and we do hope we are able to conclude before Section 11, which is till September 30. In any case, if out of five States, the majority finalises, it becomes applicable to others. We do expect that this should be concluded before the existing Section 11 period of September 30,” he added. The Ministry of Power last month extended the special operating framework for the Mundra plant till September 30 under Section 11 of the Electricity Act, allowing the country’s largest imported coal-based power station to continue supplying electricity amid rising demand. The extension gives Tata Power time to complete the revised contractual framework with all procuring States.Power supplyThe 4,000-MW Mundra ultra mega power project, operated by Tata Power subsidiary Coastal Gujarat Power Ltd (CGPL), supplies electricity to Gujarat, Maharashtra, Rajasthan, Haryana and Punjab. The project has historically struggled with viability because it imports coal while supplying power under competitively bid long-term tariffs that did not account for sharp increases in international fuel prices. To address this, CGPL has been signing supplementary PPAs with procurers to establish a revised tariff framework that better reflects imported fuel costs. The SPPA with Gujarat Urja Vikas Nigam Ltd (GUVNL), executed in March, has already superseded the earlier agreement for Gujarat’s contracted capacity, while approvals from the remaining states are under way. The plant had remained shut for overhaul after June 2025 before resuming full operations from April 1 this year under the revised Section 11 framework. The company said the restart has already begun contributing to earnings. “Mundra after restarting contributed ₹20 crore to the first quarter PAT while it contributed ₹447 crore to EBITDA,” Sinha said.Q1 profit upSeparately, Tata Power reported an 11 per cent year-on-year increase in consolidated profit after tax (PAT) at ₹1,401 crore for the quarter ended June 30, 2026, supported by improved operational performance across generation, transmission, distribution and renewable energy businesses. Revenue from operations rose 8 per cent year-on-year to ₹18,898 crore, while EBITDA increased 8 per cent to ₹4,249 crore. The company said its core businesses of generation, transmission and distribution and renewables delivered strong performance during the quarter, with revenue growth of 12 per cent, EBITDA growth of 12 per cent and PAT growth of 14 per cent year-on-year.Separately, the company’s board approved raising up to ₹4,500 crore through private placement of non-convertible debentures (NCDs) and other debt securities. According to a regulatory filing, the proceeds will primarily be used to refinance existing loans.Published on July 27, 2026
