Tata Power is moving to finalize supplementary power purchase agreements (SPPAs) for its 4,000-MW imported coal-based Mundra power plant with five beneficiary states before the end of September.
The company has already secured a revised agreement with Gujarat and is targeting deals with Punjab, Haryana, and Rajasthan by August, followed by Maharashtra in September.
Under the proposed framework, approval from a majority of the states will be sufficient to bind all procurers to the new tariff terms.
This mechanism is designed to streamline negotiations and ensure uniform pricing across the consortium, reducing the risk of holdouts delaying the plant's revenue realization.
The Mundra facility is a cornerstone of Tata Power's thermal generation portfolio.
Securing these long-term contracts is critical for the company's cash flow stability and debt servicing capabilities, particularly as it navigates a broader energy transition strategy.