Adani Power Secures Approval for Dhirauli Mine Operations, Targets 6.5 MTPA Peak Output
Adani Power's subsidiary, Mahan Energen Ltd., has received approval from India's Ministry of Coal to begin operations at the Dhirauli Mine in Madhya Pradesh. The mine has a peak production capacity of 6.5 MTPA, with 5 MTPA from open cast mining. It boasts a gross geological reserve of 620 MMT and a net reserve of 558 MMT. This is Adani Power's first captive mine to receive such approval, aimed at enhancing raw material security and supporting the company's 1,200 MW Mahan Power plant, which is undergoing a 3,200 MW expansion. The company plans to achieve peak open cast rated capacity by FY27 and may implement coal washing within the mining area to reduce impurities.

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Adani Power Limited , India's largest private sector thermal power producer, has achieved a significant milestone in its journey towards self-sufficiency and sustainable growth. The company has received approval from the Ministry of Coal, Government of India, to commence operations at its Dhirauli Mine in Singrauli district, Madhya Pradesh.
Key Highlights
- Adani Power's subsidiary, Mahan Energen Ltd., owns the Dhirauli Mine
- The mine has a peak production capacity of 6.5 million tonnes per annum (MTPA)
- Open cast mining will contribute 5 MTPA, with the remainder from underground operations
- The company aims to achieve peak open cast rated capacity by FY27
- The mine boasts a gross geological reserve of 620 MMT and a net geological reserve of 558 MMT
Strategic Importance
This development marks Adani Power's first captive mine to receive government approval for commencing mining operations. The Dhirauli Mine is expected to play a crucial role in enhancing the company's raw material security and reinforcing its leadership position in the power sector.
SB Khyalia, Chief Executive Officer of Adani Power, commented on the significance of this approval, stating, "The commencement of mining at the Dhirauli block marks a pivotal milestone in Adani Power's journey towards self-sufficiency and sustainable growth. By integrating backward into raw material sourcing, we are not only optimizing input costs but also enabling ourselves to deliver competitively priced power for millions of consumers."
Operational Details
The Dhirauli Mine is set to fulfill Adani Power's merchant power requirements and supply coal to the nearby 1,200 MW Mahan Power plant, which is currently undergoing an ambitious 3,200 MW expansion. Adani Power holds a 30-year mining lease for the block, ensuring long-term operational continuity.
As part of its responsible mining initiative, Adani Power may also wash and process the mined coal within the mining area itself. This approach aims to prevent impurities and inert materials from being carried beyond the mine area, resulting in more benign emissions.
Future Outlook
With the commencement of operations at the Dhirauli Mine, Adani Power is poised to strengthen its position in the power sector. The company's focus on backward integration and sustainable practices demonstrates its commitment to long-term value creation for all stakeholders while contributing to India's energy security.
As Adani Power continues to harness technology and innovation, it remains dedicated to its goal of transforming India into a power-surplus nation and providing quality, affordable electricity for all.
Historical Stock Returns for Adani Power
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
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+0.25% | +2.49% | +3.91% | +25.60% | -9.45% | +1,450.06% |