Coastal Gujarat Power Ltd, a Tata Power Company and the developer of Mundra UMPP, has sought the power ministry's intervention to address the issue of increase in Indonesian coal price from where the company is sourcing its coal for the UMPP.

A team of officers of CEA, Ministry of Power and APGENCO also visited the site of Reliance Power's Krishnapatnam UMPP in Andhra Pradesh and observed the work had been stopped by the developer inter-alia due to the increase in the prices of Indonesian coal.

Since the power purchase agreement is a legally binding document exclusively between the procurer and the developer, the Ministry of Power has advised the lead procurers i.e. Government of Gujarat for Mundra UMPP and Government of Andhra Pradesh for Krishnapatnam UMPP that any issue arising therein is to be settled within the provisions of PPA by the contracting parties for which the lead procurer may take necessary action.