Tata Power's share price rose 5% following approval from the Gujarat government for a new power supply agreement. The deal enables the restart of the company's 4-gigawatt Mundra plant. It is set to take effect from April 2025, pending federal approval.
Shares of Tata Power surged 5% after the Gujarat government approved a power supply agreement for the Mundra plant. This development allows the company to restart its 4-gigawatt facility, which had been idle. The agreement seeks to increase power output in anticipation of potential summer gas shortages in India. It still requires approval from federal authorities before implementation. Once effective from April 2025, tariffs under the deal will match those in other states. Industry observers view this as a positive step providing relief to India's energy sector amid ongoing supply challenges. The Mundra plant, located in Gujarat, represents a significant capacity boost for Tata Power's operations.