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Adani Power to Invest Rs 180 Billion to Triple Kawai Plant Capacity

2024-09-06

Adani Power, India's largest private thermal power producer, plans to significantly expand the capacity of its Kawai power plant in Rajasthan, investing up to Rs 180 billion. Sources familiar with the matter revealed that the current capacity of the Kawai plant, which stands at 1,320 MW, will be increased in two phases of 1,600 MW each, ultimately reaching 4,520 MW over the next few years. Located in the Atru Tehsil of Baran district, the Kawai plant has already been allocated ?10,000 crore worth of work to Bharat Heavy Electricals Ltd for this expansion.

Despite attempts to contact Adani Power for a comment, there was no response. This expansion aligns with the company's broader strategy of setting up new plants and expanding existing ones across the country while exploring acquisition opportunities. An official knowledgeable about the plans indicated that Adani Power aims to enhance its thermal power capacity through both organic and inorganic growth, with a goal to double its current 15 GW capacity to around 31 GW.

To support these plans, Adani Power has secured extensive domestic fuel agreements through long- and medium-term contracts, as detailed in an analyst presentation. The company has acquired new power purchase agreement bids for 6,400 MW linked to pre-assigned state mines and is enhancing fuel availability and cost control with commercial mining licenses in favorable locations. The company has also identified a development pipeline of 11.2 GW, including three major projects: two brownfield expansions in Raipur and Raigarh, Chhattisgarh, costing nearly ?10,000 crore, and a greenfield facility in Mirzapur, UP, being developed by its subsidiary, Mirzapur Thermal Energy (UP).