Tata Power will gradually start to shut down generating units at its beleaguered imported coal-based 4,150 MW power plant in Mundra from March 11, as indecision about tariff revision by the states it supplies power to continues to pile up under recoveries for the company. “Talks (with the states) have been on for months and if no resolution is reached soon, we cannot continue to run the plant,” Praveer Sinha, CEO, Tata Power, said at an event on Wednesday. Coastal Gujarat Power (CGPL), the Tata Power arm that runs the Mundra ultra mega power plant, has power purchase agreements (PPAs) with Gujarat, Maharashtra, Haryana, Rajasthan and Punjab. Apart from Gujarat, none of the states have approved tariff hikes for electricity procured from the power plant to compensate for abnormal rise in Indonesian coal prices, from which the company sources the fuel.
