Tata Power Gujarat Plant Ordered to Run at Full Capacity

India has instructed a 4-gigawatt imported-coal power plant in the western state of Gujarat to operate at its maximum capacity from April 1 to June 30. The directive, issued by the central government, is designed to meet the projected spike in electricity demand during the peak summer season.

The mandate comes as the country prepares for record-breaking energy requirements. Officials anticipate that peak power demand could hit 270 gigawatts in the coming months, rising from the 242 gigawatts seen in the 2025–26 cycle. By boosting output from plants that utilize imported coal, the government aims to prevent potential shortages across the grid.

To ensure adequate power availability, generation from imported coal-based plants needs to be increased.

The specific facility operated by Tata Power has been mostly idle for the past half-year. Its inactivity was attributed to the high price of imported coal and the absence of a stable power purchase agreement. This situation changed recently after the Gujarat state government approved a revised supply arrangement, clearing the path for the plant to resume long-term operations.

Under the new order, a government-appointed committee will determine the benchmark rates for the electricity generated by the plant. Furthermore, the administration has signaled that it may extend similar full-capacity requirements to other imported coal-based facilities between April and June if the energy situation necessitates additional supply.