Tata Power Company Ltd.

Tata Power’s wholly owned subsidiary Coastal Gujarat Power (CGPL) has stopped power supply to the distributing companies of Rajasthan from its 4,000 MW ultra-mega power project (UMPP) at Mundra, Gujarat, because of payment default issues. CGPL has decided to discontinue the supply of power to the three Rajasthan state-owned distribution companies (discoms) by putting forward its rights under the Power Purchase Agreement (PPA).

The company has taken this initiative after several notices to the discoms required under the PPA, and thus decided to terminate its contract. The three Rajasthan discoms account for 10% of the total capacity from Mundra UMPP. The company will make alternative arrangements for contracting and selling this power.