Tata Power today said it has synchronised another 800 MW unit at the Mundra ultra mega power project, taking the utility's overall generation capacity to 7,699 MW.

The country's largest power producer is developing the 4,000 MW Mundra UMPP in Gujarat and has synchronised the fourth 800 MW unit at the plant.

With this, the total power generation capacity of Tata Power stands at 7,699 MW, Tata Power said in a statement.

Out of the total capacity, thermal power accounts for 6,847 MW.

"The synchronisation of Unit 4 of Mundra UMPP is a significant milestone given the critical power shortage situation in the country," Tata Power Managing Director Anil Sardana said.

Generally, synchronisation is the final step before commissioning of a power generation unit.

The first three units -- each having 800 MW capacity -- were commissioned last year.

Coastal Gujarat Project Ltd), a wholly-owned subsidiary of Tata Power, is implementing the import coal-fired Mundra UMPP. CGPL has power purchase agreements with seven procurers from five states -- Gujarat, Maharashtra, Haryana, Rajasthan and Punjab for the sale of contracted capacity.

Grappling with rise in international coal prices, Tata Power has approached the Central Electricity Regulatory Commission (CERC) seeking higher tariff.

"We eagerly await a viable solution by the CERC and look forward to an early resolution of this issue," Sardana said.

Shares of Tata Power were trading 0.77 per cent down at Rs 109.25 apiece in afternoon trade on BSE.