Compared to other sub-critical plants in India, Mundra UMPP would use 1.7 million tonnes of less coal per year while generating the same quantum of power.

[9] The Indonesian government's decision in 2010 to change its mining law to bring coal price exported from Indonesia in line with the international market[10] caused an increase in coal price and under-recovery of costs at Mundra UMGPP (and similarly impacted Adani Power's 4620 MW Mundra plant).

In December 2016 the Central Electricity Regulatory Commission allowed compensatory relief for Tata Power from the electricity procuring states under the Force Majeure clause after having awarded in February 2014 a compensatory tariff of 52 paise per unit;[12] however the orders are subject to the outcome of a pending appeal in the Supreme Court.

The compensatory relief also is to be adjusted against profits made in sale of coal from the Indonesian mines where the companies have a stake.

Tata Power is arguing that the promulgation of the Indonesian Regulation is an event which is beyond its control and has made it impossible for the company to perform its obligations as per the contracted price.

On 18 July 2012 the Central Electricity Regulatory Commission deferred a decision on Tata Power's petition.

[16] On 25 October 2012 the CERC admitted the petition for hearing since the consultative process under Article 17.3 of the Power Purchase Agreement (PPA) between Coastal Gujarat Power Ltd and the lead procurer, Gujarat Urja Vikas Nigam Limited (GUVNL) had failed.