Tata Group's chairman Ratan Tata has introduced his successor, Cyrus Mistry to Gujarat chief minister Narendra Modi in Gandhinagar on Thursday. Mr. Tata is also believed to have discussed the renegotiation of the power purchase agreement (PPA) with the state government for its Mundra. The first phase of the project is already complete but the company is aiming to get a higher price for the power before starting production of power.

The company is claiming that the increase in price due to a rise in prices of coal, which will be imported from Indonesia for producing power. Meanwhile, Indonesia made it mandatory for coal exports to be benchmarked to international prices from September 23.

The Mundra UMPP project is expected to produce 4000 MW of power by the end of 2012. About 40% of total power produced will be for Gujarat and the rest will be sent to the states of Rajasthan, Haryana and Punjab.

Ratan Tata and Cyrus Mistry met Modi at his official residence in Gandhinagar, according to a state government press release. Mistry is set to take over the working of the group in about one year. He expressed interest in expanding investment in eth state. Cyrus Mistry would become Chairman of the Tata group's holding company Tata Sons in December 2012 after the retirement of Ratan Tata.