Tata Power shares surge after regulator allows tariff hike

MUMBAI (Reuters) - Shares of Tata Power Co rose as much as 5.9 percent on Tuesday after India's central electricity regulator allowed the company to raise electricity tariffs on a temporary basis at its Mundra power plant in western India.

The Central Electricity Regulatory Commission on Monday allowed Coastal Gujarat Power Ltd, a unit of Tata Power, to charge "compensatory" tariffs on account of the rising cost of imported coal, the power utility said on Monday.

Tata Power shares were up 3.5 percent as of 9:30 a.m.

(Reporting by Abhishek Vishnoi; Editing by Rafael Nam)