Adani Power Limited (APL), India's largest private sector thermal power generator, has signed a significant 25-year Power Supply Agreement (PSA) with Bihar State Power Generation Company Ltd. (BSPGCL). The agreement, finalized on September 12, 2025, involves the supply of 2,400 MW of power from a new ultra super critical plant to be constructed in Pirpainti, Bhagalpur district, Bihar.

Project Details

Power Distribution

The project will supply power on behalf of:

• North Bihar Power Distribution Company Ltd. (NBPDCL)
• South Bihar Power Distribution Company Ltd. (SBPDCL)

Economic Impact

The new power plant is expected to generate substantial employment opportunities:

• Construction Phase: 10,000-12,000 jobs
• Operational Phase: Approximately 3,000 jobs

Project Timeline

Adani Power aims to fully commission the plant within 60 months from the agreement date.

Company Background

Adani Power Limited, part of the Adani portfolio, currently has an installed thermal power capacity of 18,110 MW spread across twelve power plants in Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Madhya Pradesh, Jharkhand, and Tamil Nadu. The company also operates a 40 MW solar power plant in Gujarat.

This new agreement further solidifies Adani Power's position as a key player in India's power sector, contributing to the nation's goal of becoming power-surplus and ensuring affordable electricity for all.

The signing of this long-term agreement represents a significant step in addressing Bihar's power needs and demonstrates the continued growth and expansion of Adani Power in the Indian energy market.

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.