THEBUSINESSBYTES BUREAU

AHMEDABAD, MARCH 15, 2026

Adani Power Ltd (APL), India’s largest private sector power generator, on Sunday announced that it has received a Letter of Award (LoA) from Maharashtra State Electricity Distribution Company Ltd (MSEDCL) for the supply of 1,600 MW of electricity from one of its upcoming ultra-supercritical thermal power projects.

The LoA follows Adani Power’s success in a highly competitive bidding process in which the company emerged as the lowest-tariff bidder, offering power at a combined tariff of Rs 5.30 per unit. The electricity supply under the proposed 25-year Power Supply Agreement (PSA) is scheduled to begin from the financial year 2030-31.

The award marks another significant milestone for the company at a time when investments in the thermal power sector are witnessing renewed momentum. Adani Power has been steadily strengthening its position as a major provider of new generation capacity, supporting India’s ambitious target of adding 100 GW of thermal power capacity by 2032. During FY25-26 alone, the company secured five long-term PSA bids with a combined capacity of 10,400 MW.

 “With India’s power demand continuing to rise steadily, long-term and reliable capacity addition is critical to ensure energy security,” said S.B. Khyalia, CEO of Adani Power Ltd. “This LoA from MSEDCL reflects the competitiveness of Adani Power’s cost structure, our ability to deliver dependable baseload power and our commitment to supporting India’s growing electricity needs through long-term partnerships. As India's leading private power producer, we are keen to support Maharashtra's and the nation's ambitious development goals with reliable and affordable electricity supply.”

With the latest development, Adani Power has now tied up long-term PSAs for 13.3 GW out of its 23.8 GW capacity currently under implementation, marking a major step toward its goal of securing nearly its entire capacity under long-term contracts. More than 95 percent of the company’s existing operational capacity of 18.15 GW is already backed by medium- to long-term PSAs, while over 55 percent of its upcoming capacity pipeline is secured through 25-year agreements, ensuring strong revenue visibility and operational stability.

The MSEDCL bid also includes a pre-determined coal linkage, which will ensure long-term fuel security and support reliable and cost-effective power supply for consumers.

Adani Power is currently undertaking what is described as India’s largest private sector thermal power capital expenditure programme, aiming to expand its generation capacity from 18.15 GW to 41.87 GW by FY31-32 with investments of approximately Rs 2 lakh crore. The expansion is aligned with India’s rapidly growing electricity demand driven by economic growth, urbanisation, industrial expansion and rising household electrification. During the construction phase, these projects are expected to generate employment for tens of thousands of people while stimulating industrial demand across multiple sectors.