The plant, which had remained largely idle due to high coal costs and lack of a power purchase agreement, is now set to resume supply following a revised arrangement approved by Gujarat. The government may extend similar directives to other plants and has also set up a committee to determine benchmark tariffs for power generated.
India has directed Tata
Power’s 4-gigawatt imported-coal plant in the western
state of Gujarat to run at full capacity from April 1 to June
30, citing higher summer demand, per a government order seen by
Reuters.
Here are some details:
* To ensure adequate power availability, generation from
imported coal-based plants needs to be increased, the order
said.
* The government may extend the full-capacity mandate to
other imported coal-based plants between April and June if
required.
* The directive comes as India anticipates record peak power
demand of around 270 gigawatts in the coming months, up from
about 242 GW in 2025–26, and moves to boost output from
imported-coal plants to avoid shortages.
* It also follows the Gujarat state government’s recent
approval of a revised power purchase arrangement with Tata
Power, clearing the way for the resumption of long-term supply
from the plant.
* The plant has been largely idle for the past six months
due to high imported-coal costs and the absence of a power
supply agreement.
* A government-appointed committee will set benchmark rates
for power supplied from the plant.
Published on March 23, 2026
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