Adani Power Secures 1,600 MW Project In Madhya Pradesh Through Greenshoe Option

Ahmedabad, Sep 11, 2025: Adani Power Ltd. (APL), India’s largest private sector thermal power producer, announced on Thursday that it has been awarded a total capacity of 1,600 MW by Madhya Pradesh Power Management Company Limited (MPPMCL) under the recently concluded tendering process.

The company received a Letter of Award (LoA) from MPPMCL for an additional 800 MW under the ‘Greenshoe Option,’ on top of the 800 MW already awarded earlier.

Major Wins Over the Past Year

This takes Adani Power’s total secured capacity through tenders over the last 12 months to 7,200 MW, making it the fifth major power supply order won by the company during this period.

Tariff and Project Details

The additional 800 MW capacity awarded under the greenshoe mechanism will be supplied at the same tariff of Rs 5.838 per kWh, which applied to the earlier awarded 800 MW.

Adani Power will set up a 1,600 MW Ultra-supercritical thermal power unit in the Anuppur district of Madhya Pradesh under the Design, Build, Finance, Own, and Operate (DBFOO) model.

Both units of the plant are expected to be commissioned within 60 months of the appointed date.

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Investment and Employment

The company has committed to an investment of around Rs 21,000 crore for setting up the new plant and associated infrastructure. The project is expected to generate 9,000–10,000 direct and indirect jobs during the construction phase and about 2,000 jobs once the plant becomes operational.

Fuel Security Through SHAKTI Policy

The coal requirement for the project has already been secured under the SHAKTI Policy of the Government of India, ensuring fuel availability for the plant.

Once operational, the project is expected to strengthen Madhya Pradesh’s power supply, addressing growing electricity demand due to rising industrialisation and urbanisation in the state.

First-of-its-Kind Greenshoe Mechanism

Significantly, this development marks the first use of a greenshoe option in a thermal power tender in India. The mechanism, commonly seen in capital markets, allows for an expansion of capacity under the same terms and conditions as the original award.

Its adoption in the coal-based power sector is being viewed as an innovative step toward meeting the state’s long-term energy security needs.

CEO’s Statement

Commenting on the development, S.B. Khyalia, Chief Executive Officer of Adani Power, said, “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," he said.

Recent Expansion Orders Across States

Adani Power has been on an aggressive expansion path. In September 2024, it won a composite order of 6,600 MW (5,000 MW solar and 1,600 MW thermal) in Maharashtra. In May 2025, it received a 1,600 MW LoA from Uttar Pradesh.

This was followed by another 2,400 MW project in Bihar in August 2025. Last month, MPPMCL awarded it 800 MW, which has now doubled to 1,600 MW with the exercise of the greenshoe option.

Current Capacity and Future Targets

Currently, Adani Power operates 18.15 GW of capacity across 12 thermal power plants in Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Madhya Pradesh, Jharkhand, and Tamil Nadu, along with a 40 MW solar plant in Gujarat.

The company aims to scale its total capacity to 41.87 GW by 2031-32, making it India’s largest private sector capex programme in the power sector.