Tata Power Stock Rises 4% Following PPA with Gujarat Government for Mundra Plant
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Tata Power Shares Surge 4% After Signing PPA with Gujarat Govt for Mundra Plant
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CNBC TV18•20-03-2026, 10:18
Tata Power Shares Surge 4% After Signing PPA with Gujarat Govt for Mundra Plant
•Tata Power shares gained nearly 4% after signing a Power Purchase Agreement (PPA) with the Gujarat Government for the Mundra Power plant.
•MD & CEO Praveer Sinha confirmed the approval for a supplementary PPA for Mundra, with Maharashtra, Rajasthan, Punjab, and Haryana to follow.
•The company incurred a loss of ₹1,000 crore in the first nine months of FY26 due to the Mundra shutdown.
•The PPA rate is similar to Section 11, and the agreement will serve as a template for other states.
•ICICI Securities anticipates an upside of ₹700-800 crore from this PPA, potentially rising to ₹1,200-1,400 crore annually with other states' approvals.
