Adani Power Limited has received a Letter of Award (LoA) from Maharashtra State Electricity Distribution Company Limited (MSEDCL) for the long-term supply of 1,600 MW of thermal power. The power will be supplied under a 25-year Power Supply Agreement (PSA), commencing in the financial year 2030-31. APL emerged as the lowest-tariff bidder, quoting a combined tariff of Rs 5.30/kWh for this significant long-term contract.
Major Long-Term Power Supply Secured
Adani Power Ltd (APL) has successfully secured a significant long-term power contract, having received a Letter of Award (LoA) from the Maharashtra State Electricity Distribution Company Ltd (MSEDCL). This agreement is for the supply of 1,600 MW of thermal power, sourced from one of APL’s upcoming ultra-supercritical thermal power projects (USCTPP).
APL won the contract by emerging as the lowest-tariff bidder in a highly competitive bidding process. The proposed tariff for the power supply is quoted at a combined rate of Rs 5.30/kWh. The ensuing Power Supply Agreement (PSA) is structured for a long duration of 25 years, with the power supply scheduled to commence from the financial year 2030-31.
Strategic Significance for Growth and Stability
This award is notable as it follows several recent wins for APL in securing long-term capacity, contributing to the nation’s goal of adding 100 GW of thermal power capacity by 2032. During the fiscal year FY25-26, APL has already secured five long-term PSA bids, totaling 10,400 MW.
Mr. S.B. Khyalia, CEO of Adani Power Ltd., highlighted that the LoA reflects the company’s cost competitiveness and its commitment to delivering dependable baseload power. The MSEDCL bid includes a pre-determined coal linkage, ensuring fuel security and cost-effective supply.
Impact on Capacity Pipeline
With this new contract, Adani Power has now tied up long-term PSAs totaling 13.3 GW out of its current 23.8 GW under-implementation pipeline. Furthermore, more than 95% of APL’s existing operating capacity of 18.15 GW is already secured under medium-to-long-term PSAs. Over 55% of the upcoming 23.8 GW capacity is secured under 25-year PSAs, providing substantial visibility and stability to future volumes and revenue streams.
Broader Expansion Context
Adani Power is currently undertaking India’s largest private sector thermal power capital expenditure program, expanding its total capacity from the current 18.15 GW to 41.87 GW by FY31-32, backed by investments of approximately Rs 2 lakh crore.
Contract Annexure Summary
The key particulars of the agreement, as detailed in ANNEXURE A, confirm that the entity awarding the contract is Maharashtra State Electricity Distribution Company Limited (“MSEDCL”). The contract nature is Domestic, covering the long-term supply of 1600 MW Thermal Power. The initial quoted tariff for the first year is Rs 5.30/kWh for the 25-year supply period.
Source: BSE
