Why the Mundra power plant has given Tata a mega headache
Tata Mundra was supposed to herald a new era of cheap energy for India. Instead, to date, it has served as an example of the tension between development and traditional ways of life.
The first of 16 “ultra mega power projects” (UMPP) planned by the Indian government, Mundra – an enormous 4,150MW coal-fired power station named after the coastal area that is its planned site – would use modern technology to provide affordable electricity to five Indian states.
Part-funded by a $450m (£300m) loan from the International Finance Corporation, the World Bank arm that lends to private companies, it has consistently been described by Tata Power, which won the government contract to build the power station, as “arguably the most energy-efficient, coal-based thermal power plant in the country”.