Adani Power Secures 1,500 MW Supply Contract with Uttar Pradesh; $2 Billion Investment Planned
India's Largest Private Thermal Power Generator to Build Ultra-Supercritical Power Plant Under DBFOO Model
In a significant development for India's power sector, Adani Power Ltd has emerged victorious in a competitive bidding process to supply 1,500 MW (net) of thermal power to Uttar Pradesh. The company announced on May 10, 2025, that it will establish a state-of-the-art greenfield power plant to fulfill this substantial contract.
Contract Details and Investment Plans
Under the terms of the agreement, Adani Power will supply electricity at a highly competitive tariff of ₹5.383 per unit from a planned 2x800 MW ultra-supercritical power plant. This modern facility will be developed using the Design, Build, Finance, Own, and Operate (DBFOO) model within Uttar Pradesh.
The Uttar Pradesh cabinet had already approved this significant energy project earlier this month. Following this win, Adani Power will proceed to sign a long-term Power Supply Agreement (PSA) with the Uttar Pradesh Power Corporation Ltd. (UPPCL) under the Letter of Award (LoA).
S.B. Khyalia, Chief Executive Officer of Adani Power, expressed enthusiasm about the project, stating: "We are happy to have won the competitive bid to supply 1,500 MW power to UP and feel privileged to play a leading role in meeting the state's rapidly growing power demand. We plan to set up a modern and low emission ultra-supercritical plant in UP and aim to begin supplying reliable and high-quality power by FY30."
The company has announced plans to invest approximately $2 billion (roughly ₹16,800 crore) in establishing the plant and its associated infrastructure. This significant capital commitment underscores Adani Power's confidence in the project's long-term viability and the growing energy demands of Uttar Pradesh.
Economic and Employment Impact
Beyond addressing Uttar Pradesh's energy needs, this major infrastructure project promises substantial economic benefits for the region. According to company projections, the construction phase alone is expected to generate 8,000-9,000 direct and indirect jobs. Once operational, the facility will provide stable employment for approximately 2,000 individuals.
The timing of this power supply agreement aligns with Uttar Pradesh's projected energy requirements. The state's thermal power demand is forecast to increase by 11,000 MW by 2033-34, driven by accelerating industrialization, urbanization, and modernization efforts. This 1,500 MW contract represents a strategic component of the government's comprehensive plan to meet these growing energy needs.
Expanding Portfolio of Power Supply Agreements
This successful bid marks the second major Power Supply Agreement that Adani Power has secured within the past year. In September 2024, the company received a composite 6,600 MW Letter of Intent from the Maharashtra State Electricity Distribution Company Ltd (MSEDCL), comprising 1,600 MW of thermal power and 5,000 MW of solar power. That agreement has since been formalized into a Power Supply Agreement.
As India's largest private sector thermal power producer, Adani Power continues to expand its footprint in the country's energy sector through these strategic contracts. The company's commitment to deploying advanced ultra-supercritical technology for the Uttar Pradesh project also reflects the industry's gradual shift toward more efficient and environmentally responsible power generation methods.
Market Implications
For investors monitoring the power sector, this development signals Adani Power's continued growth trajectory and its ability to secure major long-term contracts in competitive bidding scenarios. The substantial capital investment planned for this project indicates the company's strong financial position and confidence in the long-term demand for thermal power in India's northern regions.
With power generation scheduled to commence by FY30, this project represents a significant addition to Adani Power's future revenue streams and establishes a stronger presence in Uttar Pradesh's energy market.
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