Adani Power 1600 MW: What It Means For Your Electricity Bill
Newzdaddy Business Updates
Adani Power Ltd. (APL), India’s largest private sector thermal power generator, today said that it has been awarded a total of 1600 MW capacity by MP Power Management Company Limited (MPPMCL) under the recently concluded tendering process. APL received a Letter of Award (LoA) today from MPPMCL, awarding 800 MW additional capacity under the ‘Greenshoe Option’. This comes on the back of APL’s earlier success in winning an initial 800 MW capacity in the same bidding process. This is the fifth major power supply order received by the company in the last 12 months, taking the total awarded capacity to 7,200 MW.
This additional capacity of 800 MW awarded is at the same tariff of Rs. 5.838 / kWh applicable to the earlier awarded 800 MW capacity. Accordingly, APL will supply power from a new 1600 MW (800MW X 2) Ultra-supercritical thermal power unit, to be set up under the Design, Build, Finance, Own, and Operate (DBFOO) model, in Anuppur district of Madhya Pradesh. Both units will be commissioned within 60 months of the appointed date. The company will invest around Rs 21,000 crore towards setting up the plant and related infrastructure. This development marks a first-of-its-kind adoption of the greenshoe option in a thermal power tender in India. This innovative inclusion of a greenshoe mechanism in coal-based power procurement will help Madhya Pradesh in meeting its ever-growing electricity demand owing to increased industrialisation and urbanisation, enhancing energy security for the state.
“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. 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,” stated Mr. S.B. Khyalia, Chief Executive Officer of Adani Power. The coal linkage for the power plant has been allocated under the SHAKTI Policy of the Government of India. The project is expected to generate direct and indirect employment of ~9,000 – 10,000 during the construction phase and ~2,000 once in operation.
The company expects to execute the Power Supply Agreement (PSA) in due course with the State Discom.In September 2024, it, along with Adani Green Energy, received the LoI for a composite 6,600 MW (5,000 MW solar and 1,600 MW thermal) power supply order from Maharashtra state. In May 2025, it received the LoA from the Uttar Pradesh government for the supply of 1,600 MW of power from a greenfield plant in the state. In August 2025, the company received the LoA from the Bihar government for the supply of 2,400 MW of power from a new power plant to be set up in the state. Last month, it received the LoA from MP for 800MW, and the awarded capacity has now increased to 1,600MW following the exercise of the greenshoe option by MPPMCL.
Adani Power is implementing India’s largest private sector capex programme to secure India’s growing base load demand. It has current operating capacity is 18.15GW from 12 thermal power plants (TPP) and is aiming to achieve an overall generation capacity of 41.87 GW by 2031-32.
Adani Power’s 1600 MW award underlines its growing role in India’s energy landscape. The Adani Power 1600 MW plant in Anuppur will utilise ultra-supercritical technology, resulting in improved efficiency and lower emissions per unit of electricity. As a greenfield project, everything, from design to operations, will be new, allowing for better compliance with modern standards.
Thanks to the Revised SHAKTI Policy, coal linkages are more transparent and accessible. Adani Power 1600 MW is getting coal allocation under this policy, which splits coal linkages into two windows (at the notified price or at a premium). This helps companies like Adani Power to plan fuel supply well. With coal closer by (in Madhya Pradesh), transport costs go down, making electricity more affordable.
The use of a greenshoe option in this tender gives flexibility: MP Discoms can ensure supply if demand rises. The Adani Power 1600 MW capacity also brings in investment of about Rs 21,000 crore, which will create jobs during construction (~ 9,000-10,000) and jobs during operations (~ 2,000). This helps the local economy and people.
Adani Power 1600 MW is just one among many orders Adani has won in recent months. With a portfolio of 7,200 MW awarded and an ongoing expansion of 23.72 GW, the company is doubling down. If successful, by 2031-32, Adani Power will have a generation capacity of ~ 41.87 GW.
Total capacity awarded by MPPMCL increases to 1600 MW following exercise of Greenshoe Option by MPPMCL. Earlier, the company had received LoA for the supply of 800 MW of power. The “greenshoe option” is often used in finance/IPO terms, but using it in a power tender is unusual: this shows MPPMCL wanting flexibility to scale up power awarded without re-running the tender entirely. Such options help the Discom ensure supply if demand forecasts rise unexpectedly. It also sends a signal to investors that Madhya Pradesh is serious about power infrastructure expansion.
Adani Power to supply power to MP Discom from a greenfield 1,600 MW Ultra-supercritical power plant to be set up in Anuppur district of Madhya Pradesh. Ultra-supercritical plants are more efficient and emit less CO₂ per unit of electricity compared to older thermal plants. Greenfield means this is a new site, not just upgrades, which means longer lead time but potentially modern design, better compliance with environmental norms. Anuppur has coal reserves nearby; proximity could reduce coal transport costs if the linkage is good.
Adani Power Limited has secured power supply orders totalling 7,200 MW over the last 12 months. Winning large orders helps the company lock in long-term revenue streams and amortise large investments. It also suggests strong demand from states for large baseload capacity amid growing industrialisation and urban power needs. Adani Power is currently implementing 23.72 GW of capacity addition, which will take its overall generation capacity to 41.87 GW by 2031-32. That is nearly doubling its current capacity, which requires huge investment, supply chain, planning and regulatory approvals. Such growth also implies they’d need fuel supply (coal), water, land, transmission infrastructure, and environmental clearances in time.
The revised SHAKTI Policy (2025) ensures coal linkages in a transparent way to all power producers, whether owned by central/state governments or private. This helps companies like Adani Power get coal supply commitments under predictable terms. Under the new SHAKTI Policy, coal linkage is allocated under two windows: one at the notified price, one at a premium above the notified price. Madhya Pradesh’s state electricity demand is rising fast due to both industrial growth and urbanisation. Discoms are under pressure to provide reliable power to factories, homes, and services.
