In 2007, Coastal Gujarat Power Limited, a subsidiary of Tata Power, began development of a 4,150MW coal-fired power plant in Mundra, a port town in the Kutch district of Gujarat, India. The plant, known as the Mundra Ultra-Mega Power Plant, is located 3km from the Gulf of Kutch.   At the time of IFC’s investment, the project’s total cost was estimated at US$4.14 billion, of which IFC financed US$450 million in the form of an A loan. IFC’s direct involvement with the client lasted until September 2018 when CGPL prepaid its loan.

In April 2016, CAO received a complaint filed by local residents of Tragadi village raising concerns about the outfall channel connected to the CGPL project. The complaint raised concerns about the channel’s impacts on the environment and local fishermen’s livelihoods, including limited access to water resources, coastal erosion, and damage to fish stocks and natural habitats. The complainants also raised issues regarding the use of security forces and their interaction with local populations, as well as unfulfilled social and environmental commitments.

In May 2016, CAO found the complaint eligible and initiated an assessment (Available in English and Gujarati). The complainants and CGPL did not agree to participate in a CAO-facilitated dispute resolution process. In line with the voluntary nature of dispute resolution and in accordance with CAO’s Operational Guidelines, the complaint was therefore transferred to the Compliance function for appraisal of IFC’s environmental and social (E&S) due diligence of the project.

In September 2017, CAO finalized its appraisal (Available in English), noting that the CGPL-02 complaint raised questions regarding IFC’s application of its E&S requirements to the project. As CAO’s monitoring process for the first Tata Ultra Mega-01 case progressed, CAO decided to merge this case with India: Tata Ultra Mega-01/Mundra and Anjar.

The latest monitoring report for India: Tata Ultra Mega-01/Mundra and Anjar and India: Tata Ultra Mega-02/Tragadi Village was published on September 15, 2025, and is available in English and Gujarati. All related case information can be found here.