Adani Stock In Focus: Adani Company To Set Up 1500MW Power Plant In UP For $2 Bn; To Offer 8,000-9,000 Jobs

In a major development, Adani Group-backed Adani Power wins a tightly contested bid to supply 1500 MW (net) of thermal power to Uttar Pradesh. The power-generating giant will set up a greenfield 2x800 MW (1500 MW net) Ultra-supercritical power plant in UP at an investment of ~$2 billion. Accordingly, its stock price will be in focus on Monday, May 12.

"We are happy to have won the competitive bid to supply 1,500 MW power to UP state and feel privileged to play a leading role in meeting the state's rapidly growing power demand. We plan to set up a modern and low emission Ultra-supercritical plant in UP and aim to begin supplying reliable and high-quality power by FY30," said S.B. Khyalia, Chief Executive Officer, of Adani Power.

He also revealed that the company will invest ~$2 billion in setting up the plant and related infrastructure.

From this project, Adani Power is expecting to generate direct and indirect employment of ~8,000-9,000 during the construction phase and ~2,000 once in operation.

As per the regulatory filing, Adani Power will supply power at a highly competitive tariff of Rs 5.383 per unit from a greenfield 2x800 MW (1500 MW net) Ultra-supercritical power plant to be set up under the Design, Build, Finance, Own, and Operate (DBFOO) model in the state.

Adani Power's latest development comes at a time when Thermal power demand in UP is seen rising by ~11,000 MW by 2033-34 owing to factors like industrialization, urbanization, and modernization. This 1,500 MW order is part of the government's initiative to meet that future demand.

Notably, this is the second major PSA bid the company has won in the last year, after receiving the composite 6,600 MW (1600 MW thermal and 5000 MW solar) LoI from Maharashtra State Electricity Distribution Company Ltd. (MSEDCL) in Sep 2024, which subsequently has been converted into a PSA.

About Adani Power:

Adani Power (APL), a part of the Adani portfolio, is the largest private thermal power producer in India. The Company has an installed thermal power capacity of 17,510 MW spread across eleven power plants in Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Madhya Pradesh, Jharkhand, and Tamil Nadu, apart from a 40 MW solar power plant in Gujarat.