In an exclusive interaction with CNBC-TV18, Tata Power MD & CEO Praveer Sinha said that the approval for Mundra has come for a supplementary PPA, while Maharashtra, Rajasthan, Punjab and Haryana will follow suit.
For the first nine months of financial year 2026, Tata Power had to incur a loss of ₹1,000 crore due to the Mundra shutdown.
Sinha told CNBC-TV18 that the rate of the PPA is on similar lines with Section 11, adding that the commercial issues have been agreed upon and the details will be shared soon.
The agreement is also on similar terms that the government of Gujarat has done with the Adani group and this agreement will be a template for signing the PPAs with other states, the Tata Power MD & CEO said.
Recently, the Appellate Tribunal for Electricity (APTEL)
has dismissed an appeal filed by the Brihanmumbai Electric Supply and Transport Undertaking (BEST) against an earlier order of the Maharashtra Electricity Regulatory Commission (MERC) on parallel licensing.
According to a note by JM Financial, the ruling has broader implications for the proposed Electricity Amendment Bill, particularly the concept of carrier-content separation.
Earlier this month, Tata Power shares have a meaningful ‘re-rating’ opportunity on the back of a surge in coal prices globally.
The brokerage said that the coal prices could be driven higher due to escalating energy supply-chain disruptions, which are stemming from the US-Iran-Israel conflict. You can read more on that here.
Brokerage firm ICICI Securities believes that while it awaits details of the PPA, it expects an upside of ₹700 crore to ₹800 crore from the PPA. After approval from other states, the brokerage sees that extending to ₹1,200 crore to ₹1,400 crore per annum.
ICICI Securities also calls this a huge positive for Tata Power as it removes a major overhang on the stock.
Shares of Tata Power are trading 3.8% higher on Friday at ₹413.6. The stock is now trading near its 52-week high of ₹416.8, and has risen 10% over the last one month.
