Adani Power Expands Rajasthan Plant, Targets 31 GW Capacity

India’s largest private thermal power producer, Adani Power, is significantly expanding its operations. The company has announced plans to more than triple the capacity of its Kawai power plant in Rajasthan, investing up to ₹18,000 crore.

Currently operating at 1,320 MW, the Kawai plant will undergo a two-phase expansion, increasing its capacity to 4,520 MW over the next few years. This ambitious project aligns with Adani Power’s broader strategy to double its thermal power capacity to approximately 31 GW. The company is actively pursuing both organic growth and inorganic acquisitions to achieve this goal.

To support its expansion, Adani Power has secured long-term and medium-term fuel contracts, ensuring a reliable supply for its growing operations. Additionally, the company has secured power purchase agreements for 6,400 MW, linked to pre-assigned mines from state allocations. These strategic moves are aimed at enhancing fuel availability and controlling costs.

Beyond the Kawai expansion, Adani Power is developing three new projects, each with a capacity of 1,600 MW, in Raipur, Raigarh, and Mirzapur. The Raipur and Raigarh projects are brownfield expansions in Chhattisgarh, while the Mirzapur project in Uttar Pradesh is a greenfield facility. The company is expected to invest approximately ₹14,000 crore in the Mirzapur project.

In a recent development, the National Company Law Tribunal (NCLT) approved a resolution plan for Coastal Energen, a distressed thermal power plant in Tamil Nadu. Adani Power, in partnership with Dickey Alternative Investment Trust, has acquired Coastal Energen for ₹3,336 crore. This acquisition will add 558 MW of capacity to Adani Power’s portfolio.

As Adani Power continues to expand its thermal power capacity and diversify its operations, it is positioning itself as a major player in India’s energy sector. The company’s strategic investments and focus on fuel security are expected to drive its future growth and contribute to the country’s energy needs.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.