Tata Power stock has been under pressure on the back of Mundra power plant issue. The management earlier had indicated that if they do not find a resolution by March 10, then they would have to shut down the power plant.

However, on Wednesday, the management suggested that normal operations would continue at Mundra power plant till March 20, this after a meeting was held with the Union Power Secretary on March 9.

The meeting was attended by the 5 procurers of the plant. There were positive comments discussed and hence the management is hopeful of a resolution in the next few weeks, reports CNBC-TV18.

The Union Power Secretary is expected to hold another meeting in the coming days where a positive resolution is expected.

Mundra power plant is very important for Tata Power. It has accumulated losses of around Rs 11,000 crore and so, in the near term it would be positive if the plant was shut down because the losses would go away. However, the entire loss of the company would continue and would have to be written down and that is a worrying point for the street.