Adani Power Secures Major 1500 MW Power Project Deal with UP Government

Adani Power Sees Significant Stock Surge Following Major Thermal Power Project Award

In a noteworthy development, Adani Power experienced a 6.7% increase in its share price on Monday, following the receipt of a Letter of Award (LOA) from the Uttar Pradesh Power Corporation Limited (UPPCL) for a substantial 1500 MW procurement. This award pertains to a new thermal power initiative that boasts a total capacity of 1600 MW, specifically designed with two units of 800 MW each. The power supply agreement is set to last for an impressive 25 years.

A Major Boost for Adani Power Stock

On Monday, Adani Power’s stock reached a closing price of Rs 546.6, a rise from the previous close of Rs 512 last Friday. This uptick reflects investor confidence and the promising outlook of the company following the recent contract award.

Details of the UPPCL Thermal Power Agreement

In an official exchange filing, Adani Power confirmed that this ambitious project aligns with the Uttar Pradesh government’s Design, Build, Finance, Own, and Operate model. The company secured this opportunity through a competitive bidding process, offering the most attractive tariff rate of Rs 5.383 per unit.

Adani Power plans to invest approximately $2 billion to establish an Ultra Supercritical Power Plant in Uttar Pradesh. According to S.B. Khyalia, CEO of Adani Power, the aim is to create a low-emission plant that is projected to begin delivering electricity by the financial year 2030.

Adani Power’s Winning Streak

This recent award marks the second significant power bid won by Adani Power within the year. In September, the company successfully secured a 6600 MW power project awarded by the Maharashtra government. This earlier deal encompasses the establishment of a 5000 MW solar power facility alongside a 1600 MW thermal power plant, showcasing Adani Power’s commitment to diversifying its energy portfolio.

Key Takeaways

Stock Performance: Adani Power shares rose by 6.7%, closing at Rs 546.6.
Project Details: The 1500 MW procurement is part of a 25-year contract with UPPCL.
Investment Plans: Adani Power intends to invest $2 billion in an Ultra Supercritical Power Plant.
Future Vision: The plant is expected to start operations by 2030.

Adani Power continues to demonstrate its strength in the energy sector, with strategic investments and competitive bidding positioning it for future growth.