New Delhi: Rajasthan and Haryana are examining the issue, an official in one of the state governments, said. However, Friday’s agreement clears way for the Mundra project to operate and sell its produce outside the PPA, helping the plant meet its debt obligations. Gujarat was the first state to amend the PPA based on recommendations from a three member high powered committee.
The meeting was held after Tata PowerNSE -9.26 % told the five states buying electricity from Mundra UMPP that it will not be able to operate the plant after March 20.
The 4,000-mw Mundra plant — one of the first four ambitious UMPPs in the country — has not been able to generate working capital for operations, and made cumulative losses of about Rs 11,000 crore, which has been funded by Tata Power and equity financing of Rs 5,000 crore.
