Tata Power Negotiates State Tariffs and Appeals $490 Million Award

Tata Power Company Limited is negotiating supplementary power-purchase agreements with the Indian states of Rajasthan, Maharashtra, Punjab, and Haryana. The company aims to implement cost-reflective electricity tariffs for its 4-gigawatt Mundra plant in Gujarat to offset higher coal costs. These adjustments follow a 2006 fixed-price agreement that became uneconomical after Indonesia altered coal-pricing rules in 2010.

Chief Executive Officer Praveer Sinha expects Rajasthan and Haryana to sign these agreements by the end of December. In separate legal proceedings, the company has appealed to the Supreme Court of Singapore against a $490 million arbitration award granted to Kleros Capital Partners. The dispute stems from a contested coal asset bid in Russia.

Financially, the company reported a 49 percent increase in net income to ₹1,370 crore for the July-September quarter. This growth was driven by weak monsoon conditions and high electricity demand during a heatwave.