Tata Power’s ultra-mega power plant in Mundra will stop supplying power to five states from March 11, said Praveer Sinha, CEO and managing director of the firm. “We will gradually start shutting units if no resolution is reached with the states,” said Sinha.
The extreme step is being taken in the wake of buyer states not agreeing to a tariff hike for the power being supplied by the ultra-mega power project (UMPP). Mundra supplies power to Gujarat, Haryana, Rajasthan, Punjab, and Maharashtra.
The UMPP, based in Gujarat, has been in the midst of regulatory tussles over the escalated cost of imported coal for seven years now. In a judgment in April 2017, the Supreme Court denied any compensation to Tata Power for the increased coal cost.
