Reeling under coal shortage and a looming electricity crisis, Gujarat has decided to purchase power from imported coal-based Mundra ultra mega power plant (UMPP) of Tata Power. The state government will purchase power at Rs 4.5 per unit for four weeks.
This is the second state to agree to buy from Tata Power Mundra, after Punjab which has agreed to purchase at Rs 5.5 per unit for a fortnight.
The Union Ministry of Power recently allowed imported coal-based units to sell power commercially. Tata Mundra is currently not selling to any state due to lack of clarity on the tariff.