Adani Power Ltd has taken a significant step in expanding its power generation footprint by signing a Power Supply Agreement (PSA) with the Bihar Government. The agreement entails the supply of 2,400 MW of power, marking a substantial commitment to the state's energy needs.

Investment and Project Details

The power giant plans to invest approximately $3 billion (equivalent to about ₹24,780.00 crore) to establish a new power plant and its associated infrastructure. This project will be executed under the Design, Build, Own and Operate (DBOO) model, showcasing Adani Power's end-to-end capabilities in power project development and management.

Strategic Implications

This agreement represents a major development for both Adani Power and the state of Bihar:

• Capacity Expansion: The 2,400 MW project significantly boosts Adani Power's generation capacity, reinforcing its position in the Indian power sector.
• Energy Security: For Bihar, this deal promises to enhance the state's power supply, potentially improving energy access and reliability for its residents and industries.
• Economic Impact: The substantial investment of $3 billion is likely to create jobs and stimulate economic activity in the region.

Project Model

The DBOO model chosen for this project offers several advantages:

• It allows Adani Power to leverage its expertise across the entire project lifecycle.
• The company will retain ownership and operational control, ensuring long-term involvement and potentially optimizing efficiency.
• This model often facilitates faster project completion and can be more cost-effective in the long run.

While specific details about the project timeline, technology to be used, or the exact location within Bihar have not been disclosed, this agreement underscores Adani Power's commitment to expanding its power generation portfolio and contributing to India's growing energy needs.

Adani Power Ltd. has seen a significant uptick in its share price, with an 8% gain over the past two weeks and an impressive 23% increase year-to-date. The stock closed at Rs 648.65, reflecting growing investor interest in the power generation company.

Major Project Acquisitions

Adani Power has recently secured a substantial 1,600 MW thermal power project in Madhya Pradesh, valued at Rs 21,000 crore. This marks the company's fifth major order in the past 12 months, bringing its total awarded capacity to 7,200 MW. The string of successful bids underscores Adani Power's expanding footprint in India's energy sector.

Diversification into Coal Mining and Hydroelectric Power

In a move to strengthen its vertical integration, Adani Power has received approval for an underground coal mining project in Nagpur. The project boasts an annual capacity of 2 million tonnes, potentially ensuring a steady supply of fuel for its thermal power plants.

Furthermore, the company is venturing into hydroelectric power generation through a joint venture agreement with Bhutan's Druk Green Power Corporation. The partnership aims to develop a 570 MW hydroelectric project, diversifying Adani Power's energy portfolio and tapping into renewable resources.

Upcoming Stock Split

Shareholders of Adani Power have approved the company's first-ever stock split, a move aimed at enhancing liquidity and encouraging retail participation. The split will subdivide each share with a face value of Rs 10 into five shares with a face value of Rs 2 each. The record date for this corporate action is set for September 22.

Market Outlook and Technical Analysis

Analysts are optimistic about the stock's performance following the split. Technical targets for Adani Power shares range from Rs 700 to Rs 780. Key support levels have been identified at Rs 600 and Rs 625, while resistance is expected at Rs 660 and Rs 700.

The recent developments, including project acquisitions and the upcoming stock split, have contributed to the positive sentiment surrounding Adani Power shares. As the record date approaches, investors will be closely watching the stock's performance and its potential for further growth in the power sector.