Adani Power Dhirauli Mine To Secure Decades Of Coal Supply
Newzdaddy Business Updates
Adani Power Ltd., India’s largest private sector thermal power producer, said that it has received approval from the Ministry of Coal, Government of India, to begin operations at the Dhirauli Mine in Singrauli district, Madhya Pradesh. This significant development will provide Adani Power with enhanced raw material security, reinforcing its leadership position in the sector.
The Singrauli district, often called India’s “energy capital,” already houses multiple coal mines and thermal plants, making it a key contributor to the nation’s power supply. The addition of the Dhirauli Mine strengthens this position by ensuring a dedicated fuel supply for power production.
The Dhirauli Mine, owned by Mahan Energen Ltd., a subsidiary of Adani Power, boasts a peak production capacity of 6.5 MTPA, including 5 MTPA from open-cast mining and the remainder from underground operations. According to the geological report, the block has a gross geological reserve of 620 MMT and a net geological reserve of 558 MMT, ensuring decades of supply, fuel security, and operational stability.
Singrauli’s coalfields are part of the larger Sonbhadra-Singrauli belt, one of India’s richest coal reserves. With this scale of geological reserves, the Dhirauli block alone can secure power generation for many decades, helping to stabilise prices and availability of electricity.
‘As part of a responsible mining initiative, Adani Power may also wash and process the mined coal within the mining area itself, so that impurities and inert materials are not carried beyond the mine area, and thereby the emissions are benign.
Coal washing has become important for reducing ash content in Indian coal, which is generally higher than global averages. By washing coal at the mine site itself, Adani Power can cut down harmful emissions and lower the transportation of waste material, aligning with cleaner mining practices that India has been promoting under sustainable energy goals.
“The commencement of mining at the Dhirauli block marks a pivotal milestone in Adani Power’s journey towards self-sufficiency and sustainable growth,” remarked Mr. SB Khyalia, Chief Executive Officer of Adani Power. “By integrating backwards into raw material sourcing, we are not only optimising input costs but also enabling ourselves to deliver competitively priced power for millions of consumers. Our commitment remains unwavering in developing the mine responsibly, with a focus on long-term value creation for all stakeholders.”
Experts note that backwards integration — where a power producer controls its own coal supply — is a strategic move. This shields companies from volatile global coal prices and import costs. For Indian households and industries, this often translates to more affordable and steady electricity.
This is Adani Power’s first captive mine to have received government approval to commence mining operations. The mine’s Open Cast Peak Rated Capacity (PRC) is targeted for FY27, with underground mining scheduled to commence nine years later. Adani Power holds a 30-year mining lease for the block, ensuring long-term operational continuity.
Captive mines like Dhirauli are crucial because they give companies priority access to coal for their own plants. With a 30-year lease, Adani Power has the certainty to plan large-scale expansions and supply power without worrying about future shortages.
The Dhirauli block is expected to fulfil Adani Power’s merchant power requirements and also supply to the nearby 1,200 MW Mahan Power plant, which is currently undergoing an ambitious 3,200 MW expansion.
With this expansion, the Mahan Power Plant will become one of the largest in the country. A dedicated mine supplying it means higher efficiency, lower costs, and reliable electricity for homes, businesses, and industries across central and northern India.
Overall, the Dhirauli Mine represents a strategic win not just for Adani Power but also for India’s energy sector. It secures resources for decades, promotes cleaner mining, and supports the growing electricity demand of the nation.
