Tata Power expects majority of states to sign Mundra tariff pacts by Sept

The plant was shut for overhaul after June 2025 and resumed full operations on April 1 under the revised Section 11 framework. The restart has already begun contributing to earnings. Mundra added ₹20 crore to first-quarter profit after tax and ₹447 crore to EBITDA, Sinha said.

The Mundra story is a case study in how India's electricity market handles the mismatch between long-term tariffs and volatile fuel costs. The plant's original power purchase agreements were signed in an era of stable coal prices. When global thermal coal prices spiked in 2021-22, the plant became uneconomical to run, forcing repeated government interventions under Section 11 to keep it online. The current push to convert those temporary measures into permanent supplementary PPAs would create a new template for how other imported coal-based plants handle fuel risk.

If the SPPAs close as Sinha expects, the Mundra plant would operate under a tariff structure that automatically adjusts for fuel cost changes, removing the need for repeated government orders. That would give Tata Power predictable revenue from the plant and ensure stable power supply to five states that depend on it.

Separately, Tata Power reported consolidated profit after tax of ₹1,401 crore for the quarter ended June 30, up 11% from a year earlier. Revenue from operations rose 8% to ₹18,898 crore. EBITDA increased 8% to ₹4,249 crore. The company said its generation, transmission, distribution and renewable energy businesses all grew during the quarter.

The board also approved raising up to ₹4,500 crore through private placement of non-convertible debentures and other debt securities. Proceeds will primarily refinance existing loans, according to a regulatory filing.