Industry Odisha Bureau, Sep 22: The power ministry could extend Section 11 provisions for Mundra. Tata Power’s 4,000 MW imported coal plant may operate at full capacity as power demand stays elevated.
The power ministry is considering extending Section 11 provisions for Mundra. The Tata Power-owned plant could run at full capacity until December. Elevated domestic power demand is driving the consideration. The extension has not been formally confirmed.
Mundra Could Run Flat-Out Until December
Mundra Power Plant has 4,000 MW of imported coal-based capacity. It currently operates under special Section 11 provisions. Those provisions are scheduled to expire this month. The Centre may extend them given persistent high demand. Section 11 falls under the Electricity Act. It allows government directions during extraordinary circumstances.
India’s Power Demand Stays Elevated
Peak power demand crossed a projected 271 GW in September. That level was unusually high for the month. Cooling and irrigation demand contributed to the spike. A deficit monsoon also played a role, according to the report. Last year’s summer peak reached only 243 GW. Thermal plants remain crucial during non-solar hours.
States Discuss Power Agreements
Mundra already has an SPPA with Gujarat Urja Vikas Nigam. Talks with Rajasthan, Haryana and Punjab are reportedly advanced. These supplemental power purchase agreements remain under discussion, not finalised. An SPPA allows passthrough of volatile imported coal costs. It also makes generation capacity available for supply.
Imported Coal Raises Cost Challenge
Imported coal-based power generally costs more than domestic alternatives. The Centre has been examining ways to lower these costs. Power and coal ministries have discussed adding domestic coal. India has ample supply of higher-grade domestic coal. However, Mundra’s current plant design prevents that fuel mix. The limitation remains a design constraint, not a policy choice.
Thermal Power Remains Important
Imported coal-based capacity remains necessary for meeting peak demand. The ministry has invoked Section 11 in phases before. Previous invocations responded to rising cooling requirements. Thermal generation continues playing a central role during high-demand periods. India’s electricity needs remain closely tied to seasonal demand swings. The Section 11 decision reflects ongoing efforts to secure power supply. The power ministry did not respond to an email query.
