Adani Power to Build 1,600 MW Ultra-Supercritical Plant in MP Under DBFOO Model

Adani Power has clinched a major win by securing a 1,600 MW ultra-supercritical thermal power project from MP Power Management Company Ltd (MPPMCL). The project will be developed in Anuppur district under the Design, Build, Finance, Own, and Operate (DBFOO) model, with a total investment of ₹21,000 crore. Earlier, the company had received LoA for supply of 800 MW power.

This marks the first use of the greenshoe mechanism in India’s thermal power sector—a notable innovation in public-private energy contracts.

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 industrialization and urbanisation, enhancing energy security for the state.

Key Highlights:

• Capacity Split: 800 MW initially awarded, followed by another 800 MW under the Greenshoe Option—a first-of-its-kind move in Indian thermal tenders.
• Tariff: Both allocations are priced at ₹5.838/kWh.
• Timeline: Commissioning expected within 60 months from the appointed date.
• Fuel Security: Coal linkage secured under the SHAKTI Policy of the Government of India.
• Employment Impact: Estimated 9,000–10,000 jobs during construction and 2,000 jobs during operations.

Strategic Implications:

This deal not only boosts Adani Power’s total awarded capacity to 7,200 MW in the past year, but also strengthens Madhya Pradesh’s energy security amid rising industrial and urban demand. The greenshoe mechanism—borrowed from capital markets—signals a new era of flexibility in power procurement.

While Adani Power has existing thermal operations across 12 plants nationwide, including one in Madhya Pradesh, the Anuppur project appears to be its primary active expansion in the state.

The company’s broader energy portfolio includes solar, wind, and transmission infrastructure, but no additional MP-specific projects have been publicly confirmed beyond this thermal initiative.