Legal, administrative changes key to Mundra stake sale, say experts

Adani Power and Essar Power are contemplating similar moves

Industry experts see administrative as well as legal challenges before a solution is arrived at over Tata Power and other imported coal-based power producers’ offer to sell stakes in their stressed assets. 

Tata Power last week asked Gujarat Urja Vikas Nigam (GUVNL) to buy 51 per cent equity in the 4,000 MW Mundra Ultra Mega Power Project (UMPP) for Re 1. Adani Power and Essar Power, which also have power projects based on imported coal, are contemplating similar moves.

“Case-2 bidding does not allow for change in shareholding. But this may be treated as an extraordinary situation, and one could