Adani Power Ltd (APL), India’s largest private sector power generator, has received a Letter of Award (LOA) from Maharashtra State Electricity Distribution Co. 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 competitive bidding process, where the company emerged as the lowest-tariff bidder with a combined tariff of ₹5.30 per kWh.
Power supply under the proposed 25-year Power Supply Agreement (PSA) is scheduled to commence from FY31. The award marks another long-term PSA win for Adani Power amid renewed investments in the thermal power sector.
Long-term capacity addition
Adani Power has positioned itself as a key provider of new generation capacity as India works towards adding 100 GW of thermal power capacity by 2032. During FY26, the company secured five long-term PSA bids with a combined capacity of 10,400 MW.
Adani Power CEO S.B. Khyalia said: “With India’s power demand continuing to rise steadily, long-term and reliable capacity addition is critical to ensure energy security.
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.”
Strong visibility on future capacity
With this development, Adani Power has tied up long-term PSAs for 13.3 GW out of its 23.8 GW under-implementation pipeline, marking significant progress toward its goal of securing most of its capacity under such contracts.
More than 95% of the company’s current operating capacity of 18.15 GW is tied to medium- to long-term PSAs. In addition, over 55% of its upcoming capacity of 23.8 GW is already secured under 25-year agreements, providing strong visibility on volumes and revenue.
The MSEDCL bid includes a pre-determined coal linkage, ensuring long-term fuel security and enabling reliable and cost-effective power supply.
Expansion plans
Adani Power is undertaking what it describes as India’s largest private sector thermal power capital expenditure programme, expanding capacity from the current 18.15 GW to 41.87 GW by FY32, with investments of around ₹2 lakh crore.
The projects are aligned with India’s growing electricity demand driven by economic expansion, urbanisation, industrial growth and rising household electrification.
During the project phase, they are expected to generate employment for tens of thousands of people and stimulate industrial demand across multiple sectors.