Adani Power shares jump 7% on winning 1,500 MW contract in Uttar Pradesh

Shares of Adani Power rallied by over 7% on Monday after the Adani Group company secured an order to supply 1,500 megawatt (MW) of thermal power to Uttar Pradesh. The Gautam Adani-led company will supply power at a highly competitive tariff of ₹5.383 per unit from a greenfield power plant in the state.

Boosted by the development, Adani Power shares surged by 7.5% to ₹552 on the BSE, while its market capitalisation climbed to ₹2.09 lakh crore. Early today, the power heavyweight opened higher at ₹545, up 6.1% over the previous closing price of ₹513.50.

At the current level, Adani Power shares are down by 38.5% from its 52-week high of ₹896.75 touched on June 3, 2024, while it has rebounded by 28% from its 52-week low of ₹430.85 hit on November 21, 2024.

In an exchange filing yesterday, Adani Power said it emerged as the winning bidder to supply 1,500 MW of thermal power to UP. The power will be supplied from a new greenfield ultra-supercritical power plant to be set up by the Adani group company under the design, build, finance, own, and operate (DBFOO) model in the state.

The company said that it will invest $2 billion (around ₹16,700 crore) to set up a 2x800 MW (1,500 MW net) ultra-supercritical thermal power plant and the associated infrastructure in Uttar Pradesh. The country’s largest private sector thermal power generator aims to begin supplying power from this plant by the financial year 2029-30.

The Adani Group company won a tightly contested bid to secure the Uttar Pradesh deal. “This is further to the Uttar Pradesh cabinet approving the project earlier this month. The company will now sign a long-term Power Supply Agreement (PSA) with Uttar Pradesh Power Corporation Ltd. (UPPCL) under the Letter of Award (LoA) received today,” a release dated May 10 noted.

S.B. Khyalia, Chief Executive Officer, Adani Power, said that the company would invest $2 billion in setting up the plant and related infrastructure. The project is expected to generate direct and indirect employment of 8,000-9,000 during the construction phase and 2,000 once in operation.

The release noted that the thermal power demand in UP is seen rising by 11,000 MW by 2033-34 owing to factors like industrialisation, urbanisation, and modernisation. This 1,500-MW order is part of the government’s initiative to meet that future demand.

This is the second major purchase and sale agreement (PSA) bid the company has won in the last one year, after receiving the composite 6,600 MW (1,600 MW thermal and 5,000 MW solar) order from Maharashtra State Electricity Distribution Company Ltd. (MSEDCL) in September 2024, which was subsequently converted into a PSA.

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