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