Mundra Plant’s tariff issue: Tata Power gives 5 states till March 20

Mumbai: Tata PowerNSE -9.63 % Co has given power distribution companies in five states that buy electricity from its 4,000-MW Mundra plant time until March 20 to decide on accepting higher tariffs, after which the company will decide on continuing supplies to them.

Tata Power, which is incurring losses at subsidiary Coastal Gujarat Power (CGPL), the operator of the Mundra plant, had served notices to the state governments of Gujarat, Haryana, Rajasthan, Punjab and Maharashtra on a possible shutdown because they had not agreed to a revised tariff agreement, as reported by ET on February 28.