Coastal Gujarat Power Limited (CGPL), a wholly owned subsidiary of The Tata Power Company Limited (Tata Power) has invoked its rights under the Power Purchase Agreement (PPA) and has decided to discontinue the supply of Power to the three Rajasthan state-owned Distribution Companies from its Mundra Ultra Mega Power Project(UMPP) due to non-pliance on payment security related issues. This follows its several notices to the Diss required under the PPA, thus, effectively terminating its contract. The three Rajasthan Diss account for 10% of the total capacity from Mundra UMPP.

Due to consistent failure on the part of Rajasthan Diss as Procurers to fulfill the obligations including Collateral Arrangements in spite of repeated and regular reminders, CGPL was constrained to issue notice to the Rajasthan State Diss.   Rajasthan Diss have been in default of paying its dues in a timely manner leading to large outstanding dues. Mundra balance of payments on account of fuel tariffs is already a challenge as recovery through tariff is lower than spendings. With continued non payment in a timely manner and non-availability of payment security, the Company finds it difficult to manage payment for its obligations to buy fuel and discharge its various obligations. 

The Company will make alternate arrangements for contracting and selling this power.

About Coastal Gujarat Project Ltd (CGPL):
CGPL is a Special Purpose Vehicle (SPV) formed for setting up and operating the 4000 MW Mundra UMPP. CGPL has signed a Power Purchase Agreement (PPA) with seven procurers (distribution licensees) from five states i.e. Gujarat, Maharashtra, Haryana, Rajasthan and Punjab for the sale of contracted capacity. The Mundra Power Project, India's first UMPP is progressing well. Unit 1, 2 and 3 have been missioned and Unit 4 has been synchronized last week. Unit 5 is under construction and is on schedule.

About Tata Power:
Tata Power is India's largest integrated power pany with a significant international presence. The Company has an installed generation capacity of 7700 MW in India and a presence in all the segments of the power sector viz. Fuel Security and Logistics, Generation (thermal, hydro, solar and wind), Transmission, Distribution and Trading. It has successful public-private partnerships in Generation, Transmission and Distribution in India namely "Tata Power Delhi Distribution Limited" with Delhi Vidyut Board for distribution in North Delhi, 'Powerlinks Transmission Ltd.' with Power Grid Corporation of India Ltd. for evacuation of Power from Tala hydro plant in Bhutan to Delhi and 'Maithon Power Ltd.' with Damodar Valley Corporation for a 1050 MW Mega Power Project at Jharkhand. It is one of the largest renewable energy players in India and is developing country's first 4000 MW Ultra Mega Power Project at Mundra (Gujarat) based on super-critical technology. Its international presence includes strategic investments in Indonesia through 30% stake in coal mines and a geothermal project; in Singapore through Trust Energy Resources to securitise coal supply and the shipping of coal for its thermal power generation operations; in South Africa through a joint venture called 'Cennergi' to develop projects in South Africa, Botswana and Namibia; in Australia through investments in enhanced geothermal and clean coal technologies and in Bhutan through a hydro project in partnership with The Royal Government of Bhutan. With its track record of technology leadership, project execution excellence, world class safety processes, customer care and driving green initiatives, Tata Power is poised for a multi-fold growth and mitted to 'lighting up lives' for generations to e. Visit us at: www.tatapower.



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