The Economic Times could not independently verify the report. Tata Power has also not informed the exchanges about this development.
Imported coal-fired plants have not been operating for the past six months after the government last year withdrew an emergency clause that reimbursed companies for generating electricity using expensive imported coal, Reuters added.
The deal comes as a relief to India, which aims to increase power output from its coal plants amid a Middle East conflict expected to trigger gas shortages during the summer months.
The agreement is subject to federal power regulator approval and will be retroactive to April 2025.
While the document did not reveal the exact cost of power supply, it noted that Gujarat has mandated that the tariffs should not be higher than those paid by other states, the report said.
Share price performance of Tata Power
Shares of Tata Power Company Limited have gained 8% in the last one month. However, the stock has remained largely range-bound over the long horizon, gaining just 3% over the past six months. On a year-to-date basis, Tata Power shares are up 7%, while it has returned 10% in the past year.
Tata Power Q3 Snapshot
The company’s profit after tax (PAT) rose 1% to Rs. 1,194 crore, while nine-month PAT rose 7% YoY to Rs. 3,702 crores.
Tata Power, in a press release, said revenue for Q3 FY26 was Rs. 14,485 crore, which was Rs. 15,118 crore was down 4% year-on-year. Meanwhile, revenue for the nine months rose 1% year-on-year to Rs. 47,719 crores.
EBITDA for the quarter increased to Rs. 3,913 crore, as against Rs. 3,481 crores up 12%.
During the quarter, Tata Power executed about 1.3 GW of renewable projects, crossing the 10 GW milestone in cumulative renewable EPC executions. The company’s total installed capacity now stands at 16.3 GW, underlining its expanding presence in clean energy infrastructure.
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