Tata Power share price surged by 5% on Friday, March 20, following reports that the Gujarat government has sanctioned a modified Power Purchase Agreement (PPA) with Tata Power, enabling the company to restart long-term supply from its 4-gigawatt Mundra facility.
As stated in a government document reviewed by Reuters, the report reveals that the imported coal-fired plant has not been operational for the last six months following the government’s withdrawal of the emergency clause last year, which provided compensation to companies for generating electricity with costly imported coal.
This agreement provides relief to India, which aims to maximize electricity production from its coal facilities, especially amidst a rising conflict in the Middle East that is anticipated to cause a gas shortage during the summer.
The agreement awaits approval from the federal power regulator and is set to be applied retroactively from April 2025.
According to a news report by Reuters, specific information on the pricing of the power supply remains unavailable, but Gujarat has established that the cost cannot surpass that of other states, according to a government document.
In an exclusive interview with CNBC-TV18, Praveer Sinha, the MD and CEO of Tata Power, remarked that the approval for Mundra relates to an additional Power Purchase Agreement (PPA), with Maharashtra, Rajasthan, Punjab, and Haryana expected to follow soon.
In the first nine months of the financial year 2026, Tata Power incurred a loss of ₹1,000 crore due to Mundra’s closure.
Sinha relayed to CNBC-TV18 that the PPA rate conforms to Section 11, indicating that the commercial terms have been finalized, and more information will be shared shortly.
The deal is structured similarly to the arrangement that the Gujarat government has made with the Adani group, and this agreement will serve as a model for finalizing the PPAs with other states, according to the Tata Power Managing Director and CEO.
Tata Power share price today
Tata Power share price today opened at an intraday low of ₹402 apiece on the BSE, the stock touched an intraday high of ₹418.40 per share.
According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, shares of Tata Power have shown strong traction, breaking out of a year-long consolidation range. He noted that volumes have remained robust during the recent upmove, indicating strength in the rally. Bhosale expects the stock to extend its gains in the near term, with potential upside targets in the ₹425– ₹440 range, while immediate support is placed around ₹380.
Anshul Jain, Head of Research at Lakshmishree, said that Tata Power, post a decisive breakout and successful retest, is now approaching a critical resistance band at 415–417. Price structure remains constructive, with higher lows intact and moving averages aligning as a strong dynamic support, indicating sustained trend strength.
“A decisive close above 417 would confirm continuation of the primary uptrend, opening the path toward fresh all-time highs near the 500 mark. Volume expansion on breakout will be key to validate participation. On the downside, the retest zone near moving averages acts as immediate support, with a break below it serving as the near-term invalidation level,” said Jain.
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