Adani Power (APL) has been awarded a total of 1600 MW capacity by MP Power Management Company (MPPMCL) under the recently concluded tendering process. APL received a Letter of Award (LoA) today from MPPMCL, awarding 800 MW additional capacity under ‘Greenshoe Option'. This comes on the back of APL's earlier success in winning an initial 800 MW capacity in the same bidding process. This is the fifth major power supply order received by the company in the last 12 months, taking the total awarded capacity to 7,200 MW.

This additional capacity of 800 MW awarded is at the same tariff of Rs. 5.838 / kWh applicable to the earlier awarded 800 MW capacity. Accordingly, APL will supply power from a new 1600 MW (800MW X 2) Ultra-supercritical thermal power unit, to be set up under the Design, Build, Finance, Own, and Operate (DBFOO) model, in Anuppur district of Madhya Pradesh. Both the units will be commissioned within 60 months of the appointed date. The company will invest around Rs 21,000 crore towards setting up the plant and related infrastructure.

This development marks a first-of-its-kind adoption of the greenshoe option in a thermal power tender in India. This innovative inclusion of a greenshoe mechanism in coal-based power procurement will help Madhya Pradesh in meeting its ever growing electricity demand owing to increased industrialization and urbanisation, enhancing energy security for the state.