Adani Power Limited, India’s largest private sector thermal power producer, has achieved another significant milestone in its growth journey by securing a Letter of Award (LoA) for 1600 MW capacity from MP Power Management Company Limited (MPPMCL). The latest award comes through the exercise of the Greenshoe Option, a first-of-its-kind mechanism in coal-based power procurement in India.

This new development marks a substantial increase from the earlier LoA of 800 MW awarded on August 29, 2025, taking the total capacity to 1600 MW. The project will be set up in Anuppur district of Madhya Pradesh and executed under the Design, Build, Finance, Own, and Operate (DBFOO) model.

Project Details and Investment

The awarded 1600 MW project will be developed as a greenfield ultra-supercritical thermal power plant. Adani Power will invest approximately Rs 21,000 crore to set up the plant along with the required infrastructure. The tariff applicable for the newly awarded 800 MW is Rs 5.838 per kWh, the same as the earlier 800 MW.

The company has confirmed that the project will be completed within 60 months from the appointed date, ensuring timely delivery to meet Madhya Pradesh’s growing electricity demand. Importantly, the fuel supply has been secured under the SHAKTI Policy of the Government of India, which allocates coal linkages for long-term power projects.

Employment and Economic Impact

The mega project is expected to create direct and indirect employment for 9,000 to 10,000 people during the construction phase, and around 2,000 jobs once operations begin. This will provide a significant boost to local employment and economic activity in Anuppur and surrounding areas of Madhya Pradesh.

Adani Power’s CEO, Mr. S.B. Khyalia, expressed confidence in the project, stating that this additional capacity reinforces the company’s commitment to providing reliable, affordable, and sustainable electricity to Madhya Pradesh. He also emphasized the long-term partnership between Adani Power and the state, highlighting that such projects play a critical role in India’s energy security and economic growth.

Strategic Importance of the Greenshoe Option

The adoption of the Greenshoe Option in a thermal power tender marks a historic first for India. Typically seen in financial instruments, the Greenshoe mechanism allows expansion of capacity under the same conditions, thus helping utilities like MPPMCL to quickly scale their procurement to meet rising demand.

For Madhya Pradesh, which is witnessing increasing industrialisation and urbanisation, this mechanism ensures that its energy needs are met without delays, thereby enhancing energy security for the state.

Adani Power’s Growth Momentum

The LoA from MPPMCL is not an isolated achievement but part of a larger growth story. Over the last 12 months, Adani Power has secured power supply orders totalling 7,200 MW, including:

• 6,600 MW in September 2024 (5,000 MW solar and 1,600 MW thermal) from Maharashtra.

• 1,600 MW in May 2025 from Uttar Pradesh.

• 2,400 MW in August 2025 from Bihar.

• 800 MW in August 2025 from Madhya Pradesh, now enhanced to 1,600 MW with the latest award.

Currently, Adani Power is implementing a massive 23.72 GW capex programme, which will expand its total generation capacity to 41.87 GW by 2031-32. At present, it operates 18.15 GW across 12 thermal power plants, spread across Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Madhya Pradesh, Jharkhand, and Tamil Nadu. The company also operates a 40 MW solar plant in Gujarat.

Broader Impact on India’s Power Sector

Adani Power’s expansion aligns with India’s long-term power sector goals of ensuring energy security, affordability, and accessibility. While renewable energy is being rapidly scaled up, coal-based thermal power continues to remain a critical backbone of India’s electricity grid. Ultra-supercritical technology ensures higher efficiency and lower emissions compared to conventional coal plants, making it a more sustainable option in thermal generation.

The Rs 21,000 crore investment will not only boost Madhya Pradesh’s power supply but also strengthen India’s overall energy infrastructure. By securing long-term power purchase agreements under competitive bidding, states like Madhya Pradesh can ensure stability in both supply and pricing.

Conclusion

The award of the additional 800 MW capacity under the Greenshoe Option, taking the total to 1600 MW, reflects Adani Power’s growing influence and reliability in India’s energy sector. With its strong pipeline of projects, innovative procurement strategies, and massive investment commitment, Adani Power is positioning itself as a key enabler of India’s economic and industrial growth.

As the company continues to scale up capacity and adopt modern technologies, its vision of transforming India into a power-surplus nation comes closer to reality. For Madhya Pradesh, this project is set to be a game-changer, meeting rising demand, boosting employment, and driving industrialisation in the state.

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