Adani Power wins 1,600 MW thermal plant in MP

Adani Power Wins 1,600 MW Thermal Plant in Madhya Pradesh: A Game-Changer for India’s Energy Sector

Introduction

On September 11, 2025, Adani Power Limited (APL), India’s largest private-sector thermal power generator, secured a landmark 1,600 MW ultra-supercritical thermal power project from the Madhya Pradesh Power Management Company Limited (MPPMCL). This achievement, reported by sources like The Economic Times and Financial Express, involves an investment of ₹21,000 crore to establish a state-of-the-art facility in Anuppur district, Madhya Pradesh, under the Design, Build, Finance, Own, and Operate (DBFOO) model. The project, awarded in two phases with an additional 800 MW under a pioneering “greenshoe option,” marks Adani Power’s fifth major power supply order in the past 12 months, bringing its total awarded capacity to 7,200 MW. This article explores the project’s details, its economic and social impact, the innovative greenshoe mechanism, and its significance for India’s energy landscape, with key insights from Adani Power’s CEO, S.B. Khyalia, and other stakeholders.

Project Overview

Winning the Bid

Adani Power secured the 1,600 MW project through a competitive tendering process conducted by MPPMCL. The company initially won an 800 MW capacity on August 29, 2025, at a tariff of ₹5.838 per kWh, as reported by Deccan Herald. On September 11, 2025, MPPMCL issued a Letter of Award (LoA) for an additional 800 MW under the greenshoe option, effectively doubling the project’s capacity to 1,600 MW (2 x 800 MW), per The Economic Times. This marks the first time a greenshoe option has been adopted in a thermal power tender in India, allowing the procurer to increase capacity at the same tariff, per Outlook Business.

Project Specifications

The 1,600 MW ultra-supercritical thermal power plant, to be set up in Anuppur district, will utilize advanced ultra-supercritical technology, which offers higher efficiency and lower emissions compared to traditional coal-based plants, per Financial Express. Key details include:

• Location: Anuppur district, Madhya Pradesh, a region with existing Adani infrastructure, facilitating logistics, per Republic World.

• Model: Design, Build, Finance, Own, and Operate (DBFOO), where Adani Power will manage all aspects of the project, from construction to operations, per powerpeakdigest.com.

• Fuel Source: Coal linkage allocated under the SHAKTI (Scheme for Harnessing and Allocating Koyla Transparently in India) Policy, ensuring reliable fuel supply, per The Financial Express.

• Timeline: Both 800 MW units are expected to be commissioned within 60 months from the appointed date, targeting full operation by mid-2030, per IBTimes India.

• Investment: ₹21,000 crore for the plant and related infrastructure, including transmission lines and ancillary facilities, per economictimes.indiatimes.com.

Greenshoe Option: A First in India

The greenshoe option, a financial mechanism typically used in IPOs, allows the issuer to allocate additional capacity at the same terms as the initial award. Its adoption in a thermal power tender is a groundbreaking move, per Deccan Herald. S.B. Khyalia, CEO of Adani Power, highlighted its significance, stating, “This reinforces our commitment to providing reliable, affordable, and sustainable power to the state and its people,” per The Economic Times. The greenshoe option enabled MPPMCL to double the project’s capacity without renegotiating tariffs, ensuring cost efficiency and expedited development, per Outlook Business.

Economic and Employment Impact

Investment and Infrastructure Development

The ₹21,000 crore investment is one of the largest in Madhya Pradesh’s energy sector, per english.newstrack.com. It will fund:

• Construction of the 1,600 MW ultra-supercritical plant.
• Development of associated infrastructure, including transmission lines and cooling systems.
• Upgradation of local facilities in Anuppur to support the plant’s operations, per Republic World.

This infusion of capital is expected to boost Madhya Pradesh’s economy, enhancing its status as a hub for power generation, per The Financial Express.

Job Creation

The project is projected to create significant employment opportunities, per IBTimes India:

• Construction Phase: 9,000–10,000 direct and indirect jobs, including roles for engineers, technicians, and laborers.
• Operational Phase: Approximately 2,000 permanent jobs, covering plant operations, maintenance, and administrative roles.

These jobs will benefit local communities in Anuppur, fostering economic growth and skill development, per newkerala.com.

Contribution to Energy Security

The 1,600 MW capacity will enhance Madhya Pradesh’s energy security, addressing the state’s growing electricity demand, per oneindia.com. With India’s power consumption rising 9% annually, per Reuters, the project aligns with national goals to ensure reliable power supply while transitioning to cleaner technologies, per The Economic Times.

Strategic Importance for Adani Power

Fifth Major Order in 12 Months

The Madhya Pradesh project is Adani Power’s fifth major power supply order in the past year, bringing its total awarded capacity to 7,200 MW, per economictimes.indiatimes.com. Previous orders include:

• A 1,200 MW project in Jharkhand.
• Two 1,600 MW projects in Uttar Pradesh.
• A 1,200 MW project in Maharashtra, per The Financial Express.

This string of successes underscores Adani Power’s dominance in India’s private thermal power sector, with a current operational capacity of 18.15 GW across 12 thermal plants and a 40 MW solar plant in Gujarat, per Republic World.

Expansion in Central India

The Anuppur project strengthens Adani Power’s presence in central India, complementing its existing 3,300 MW plant in Chhattisgarh and other regional assets, per oneindia.com. The strategic location in Madhya Pradesh, with access to coal linkages under the SHAKTI Policy, enhances operational efficiency, per powerpeakdigest.com.

Financial Implications

Adani Power’s stock rose 2% to ₹680 on September 11, 2025, reflecting investor confidence in the company’s growth, per angelone.in. The ₹21,000 crore investment is expected to boost long-term revenue, with the project’s tariff of ₹5.838 per kWh ensuring profitability, per The Financial Express. However, analysts note potential risks from rising coal prices and regulatory scrutiny, per Business Standard.

Technological and Environmental Considerations

Ultra-Supercritical Technology

The use of ultra-supercritical technology is a key feature of the project, offering:

• Higher Efficiency: Achieves thermal efficiency above 42%, compared to 33–38% for subcritical plants, reducing coal consumption, per Deccan Herald.
• Lower Emissions: Produces fewer CO2 emissions per unit of electricity, aligning with India’s climate goals, per The Economic Times.
• Cost Savings: Reduces fuel costs, enhancing the project’s economic viability, per Outlook Business.

This technology positions the plant as a model for sustainable thermal power, per Republic World.

Environmental Concerns and Mitigation

While ultra-supercritical plants are cleaner than older technologies, coal-based power remains controversial. Adani Power has committed to:

• Installing advanced pollution control systems, such as electrostatic precipitators and flue-gas desulfurization units, per IBTimes India.
• Implementing water conservation measures, critical in water-scarce Madhya Pradesh, per newkerala.com.
• Supporting afforestation and community development programs in Anuppur, per oneindia.com.

These measures aim to balance energy needs with environmental responsibility, though critics on X argue for faster renewable energy adoption, per posts on X.

Stakeholder Reactions

Adani Power’s Leadership

S.B. Khyalia, CEO of Adani Power, expressed pride in the achievement, stating, “We are delighted that Adani Power has not only secured the initial 800 MW project in Madhya Pradesh but has also been awarded an additional 800 MW under the greenshoe option,” per The Economic Times. He emphasized the project’s role in delivering “reliable, affordable, and sustainable power” to Madhya Pradesh, per Outlook Business.

Government and MPPMCL

Madhya Pradesh Chief Minister Mohan Yadav hailed the project as a boost to the state’s industrial and economic growth, per ANI. MPPMCL officials praised the greenshoe option for its cost-effectiveness, ensuring affordable power supply, per Deccan Herald.

Industry and Social Media

Analysts on X celebrated the deal, with posts like “Adani Power’s 1,600 MW win is a game-changer for MP!” trending, per newkerala.com. However, some users, like @GreenEnergy_IND, raised concerns about coal reliance, urging investment in renewables, per posts on X. Industry experts, per The Financial Express, view the project as a step toward meeting India’s 500 GW non-fossil energy target by 2030, with thermal power as a transitional bridge.

Broader Implications for India’s Energy Sector

Addressing Power Demand

India’s power demand is projected to grow at 7–9% annually, driven by industrialization and urbanization, per Reuters. The 1,600 MW plant will contribute significantly to Madhya Pradesh’s grid, reducing reliance on inter-state power purchases, per Republic World. It aligns with the government’s goal of achieving 24/7 power supply under the Revamped Distribution Sector Scheme, per The Economic Times.

Transition to Cleaner Energy

While India aims for 500 GW of non-fossil energy by 2030, thermal power remains critical, contributing 74% of electricity in 2025, per Business Standard. The Anuppur plant’s ultra-supercritical technology bridges the gap between immediate energy needs and long-term sustainability, per Outlook Business. Adani Power’s 40 MW solar plant in Gujarat and ongoing renewable projects signal a diversified approach, per oneindia.com.

Economic and Policy Impact

The project reinforces Madhya Pradesh’s attractiveness for large-scale investments, potentially drawing more industries to the state, per Financial Express. The greenshoe option’s success could set a precedent for future power tenders, streamlining procurement and reducing costs, per Deccan Herald. However, regulatory oversight will be crucial to ensure environmental compliance, per IBTimes India.

Challenges and Criticisms

Environmental Pushback

Environmental groups have criticized the project’s coal-based nature, citing India’s Paris Agreement commitments to reduce emissions intensity by 45% by 2030, per Reuters. Posts on X, like those from @EcoWarrior_IND, argue that ₹21,000 crore could fund renewable projects, per posts on X. Adani Power’s mitigation measures, while proactive, face scrutiny for their adequacy, per newkerala.com.

Financial Risks

The project’s ₹21,000 crore investment carries risks from fluctuating coal prices and potential regulatory changes, per Business Standard. Adani Power’s debt levels, reported at ₹27,000 crore in FY25, raise concerns about financial leverage, per The Financial Express. However, the fixed tariff of ₹5.838 per kWh provides revenue stability, per economictimes.indiatimes.com.

Political Sensitivities

Adani Group’s projects often face political scrutiny, with opposition parties questioning transparency in tendering processes, per The Indian Express. The Madhya Pradesh government’s swift approval, however, suggests strong state support, per ANI.

Future Prospects

Project Timeline and Execution

The 60-month timeline for commissioning both 800 MW units is ambitious but feasible, given Adani Power’s track record, per Republic World. The company’s experience with large-scale projects, like the 4,620 MW Mundra plant, ensures operational expertise, per oneindia.com. Regular progress updates are expected from MPPMCL and Adani Power, per powerpeakdigest.com.

Expansion Potential

The greenshoe option’s success could lead to further capacity additions in Madhya Pradesh, with MPPMCL exploring similar models for future tenders, per Deccan Herald. Adani Power’s ongoing projects in Uttar Pradesh and Jharkhand position it to dominate India’s thermal power sector, per The Financial Express.

National Energy Goals

The project supports India’s goal of energy self-reliance under the Atmanirbhar Bharat initiative, per Outlook Business. By leveraging domestic coal through the SHAKTI Policy, it reduces import dependence, aligning with the Ministry of Power’s vision, per Republic World.

Conclusion

Adani Power’s securing of the 1,600 MW ultra-supercritical thermal power project in Madhya Pradesh, announced on September 11, 2025, is a pivotal development for India’s energy sector. With a ₹21,000 crore investment, the Anuppur plant will enhance energy security, create 9,000–10,000 jobs, and introduce the innovative greenshoe option to thermal power tenders. Led by CEO S.B. Khyalia, Adani Power’s fifth major order in 12 months underscores its dominance, while the project’s advanced technology balances efficiency with environmental concerns. Despite challenges like coal reliance and financial risks, the initiative promises economic growth and reliable power for Madhya Pradesh, reinforcing Adani Power’s role in India’s energy future