Mumbai, June 29 -- The government has extended directions issued under Section 11 of the Electricity Act, 2003, for Tata Power's Mundra thermal plant in Gujarat until 30 September 2026 to ensure adequate electricity supply. Section 11 of the Act allows the government to require a generating company to operate and maintain any generating station in extraordinary circumstances. The validity of the directions had been applicable up to 30 June 2026 before the extension.
Tata Power said in an exchange filing that it had received a letter from the Ministry of Power notifying the extension and that the directions would remain in force until 30 September 2026. The Mundra plant, which has an installed capacity of 4,150 megawatt (MW), resumed operations earlier this year after a gap of almost nine months. The company had suspended operations at all units of the Mundra plant in July last year and had recorded losses owing to the temporary closure.
The government had in March instructed imported coal-based power stations to operate at maximum capacity through the April to June period as electricity demand rose during peak summer months. The extension of Section 11 directions forms part of broader measures to secure supply and manage system adequacy. Officials view the move as necessary to maintain grid stability while demand remains elevated.
Market observers noted that keeping the Mundra plant operational will augment available generation capacity in the western region and help mitigate stress on neighbouring states. Tata Power's exchange filing was treated as the formal public disclosure of the Ministry of Power's decision and will remain effective until the end of September. The government will continue to monitor supply conditions and may take further administrative steps if required.
Published by HT Digital Content Services with permission from Construction World.