Adani Power Limited (APL), India's largest private sector thermal power generator, has achieved a significant milestone in its expansion efforts. The company has secured an additional 800 megawatt (MW) capacity from MP Power Management Company Limited (MPPMCL), effectively doubling its total awarded capacity in Madhya Pradesh to 1,600 MW.

Groundbreaking Use of Greenshoe Option

In a first for India's power sector, MPPMCL exercised a greenshoe option to award the additional capacity. This innovative approach in coal-based power procurement is expected to enhance Madhya Pradesh's energy security, supporting the state's growing electricity demand driven by increased industrialization and urbanization.

Project Details and Investment

The expanded project will involve the construction of a new 1,600 MW (2 x 800 MW) Ultra-supercritical thermal power plant in Anuppur district, Madhya Pradesh. Adani Power will develop this project under the Design, Build, Finance, Own, and Operate (DBFOO) model. The company plans to invest approximately Rs 21,000 crore for the plant and related infrastructure.

Key Highlights

• Capacity: Total awarded capacity increased from 800 MW to 1,600 MW
• Tariff: Rs. 5.84 per kilowatt hour for both the initial and additional capacity
• Timeline: Both units to be commissioned within 60 months of the appointed date
• Fuel Source: Coal linkage allocated under the Government of India's SHAKTI Policy
• Employment Generation: Expected to create 9,000-10,000 jobs during construction and 2,000 during operation

Adani Power's Growth Trajectory

This award marks Adani Power's fifth major power supply order in the last 12 months, bringing its total awarded capacity to 7,200 MW during this period. The company is currently implementing a significant capex program of 23.72 GW, which aims to increase its overall generation capacity to 41.87 GW by 2031-32.

S.B. Khyalia, Chief Executive Officer of Adani Power, expressed enthusiasm about the project, stating, "This reinforces our commitment to providing reliable, affordable, and sustainable power to the state and its people. The project further strengthens our long-term partnership with Madhya Pradesh and highlights our dedication to supporting India's energy security and economic growth."

Ambitious Ebitda Target

Adani Power has announced plans to achieve Rs 70,000 crore Ebitda within six years, representing a 3.5x increase from its Rs 23,900 crore Ebitda reported in financial year 2024. This ambitious target comes after the company experienced consistent losses between financial year 2012 and fiscal year 2021 due to high debt, volatile coal import prices, and regulatory disputes. The thermal power producer has undergone a remarkable turnaround from nearly a decade of losses to setting aggressive growth targets, reflecting management's confidence in operational efficiency and India's power demand outlook.

Broader Impact

The adoption of the greenshoe option in this tender process represents a novel approach in India's thermal power sector. It provides flexibility for power distribution companies to secure additional capacity at competitive rates, potentially setting a precedent for future power procurement strategies.

As Adani Power continues its expansion, the company's growing portfolio of projects across multiple states underscores its significant role in addressing India's increasing energy demands and contributing to the nation's power infrastructure development.

This expansion in Madhya Pradesh aligns with Adani Power's broader strategy to secure India's growing base load demand and reinforces its position as a key player in the country's energy sector.

Adani Power , India's largest private sector thermal power producer, has made headlines with a significant block trade on the National Stock Exchange (NSE) while simultaneously advancing its expansion strategy in Madhya Pradesh.

Block Trade Details

Adani Power executed a block trade worth Rs 2,268.46 crores on the NSE. The transaction involved approximately 37,054,239 shares changing hands at a price of Rs 612.20 per share. This substantial trade has drawn attention to the company's stock market activity and liquidity.

Expansion in Madhya Pradesh

In a separate development, Adani Power has secured an additional 800 MW capacity from MP Power Management Company Limited (MPPMCL) under a 'Greenshoe Option'. This comes on the heels of an earlier 800 MW capacity award, bringing the total awarded capacity to 1,600 MW in Madhya Pradesh.

Key Points of the Madhya Pradesh Project

Significance of the Expansion

This project marks a first-of-its-kind adoption of the greenshoe option in a thermal power tender in India. The innovative inclusion of this mechanism in coal-based power procurement is expected to help Madhya Pradesh meet its growing electricity demand due to increased industrialization and urbanization.

Employment Generation

The project is anticipated to create significant employment opportunities:

• 9,000 - 10,000 jobs during the construction phase
• Approximately 2,000 jobs once operational

Adani Power's Growth Trajectory

Adani Power has secured power supply orders totaling 7,200 MW over the last 12 months, reinforcing its position in the Indian power sector. The company is currently implementing a 23.72 GW capacity expansion, which aims to increase its overall generation capacity to 41.87 GW by 2031-32.

S.B. Khyalia, Chief Executive Officer of Adani Power, stated, "This reinforces our commitment to providing reliable, affordable, and sustainable power to the state and its people. The project further strengthens our long-term partnership with Madhya Pradesh and highlights our dedication to supporting India's energy security and economic growth."

As Adani Power continues to expand its footprint in the Indian power sector, the recent block trade and capacity additions underscore the company's dynamic market presence and ambitious growth plans.