Adani Power receives LoA for 2,400 MW greenfield thermal power plant in Bihar; shares down 1%

Adani Power shares: India’s power demand is expected to grow rapidly in the coming years, with peak demand rising from the current nearly 250 GW to nearly 400 GW by 2031-32 and 700+ GW by 2047, propelled by rapid industrialisation, urbanisation, and a growing population. Adani Power shares: Shares of Adani Power were trading around 1% lower at ₹589.65 apiece on the BSE on Friday, August 29. The leading private sector thermal power generator said it has received a letter of award (LoA) for 25 years of long-term procurement of electricity from Bihar State Power Generation Company Ltd. (BSPGCL), which it will supply from a 2,400 MW (800 MW x 3) greenfield ultra-supercritical plant to be set up at Pirpainti in the Bhagalpur district of Bihar. BSPGCL awarded the LoA to APL on behalf of North Bihar Power Distribution Company Ltd. (NBPDCL) and South Bihar Power Distribution Company Ltd. (SBPDCL), the two state utilities. This would be followed by the signing of the power supply agreement (PSA) between the entities. India’s power demand is expected to grow rapidly in the coming years, with peak demand rising from the current nearly 250 GW to nearly 400 GW by 2031-32 and 700+ GW by 2047, propelled by rapid industrialisation, urbanisation, and a growing population. "Thermal power, with its inherent ability to provide large-scale, reliable, and round-the-clock power, will continue to remain the backbone of our energy security, providing critical base-load and grid-balancing support. To meet this ever-increasing power demand, the government has envisaged an additional around 100 GW of thermal capacity to be added by 2035," the company said in its press release. "Adani Power, as India's largest private sector thermal power producer, has consistently demonstrated the capability to deliver dependable capacity at scale," said S.B. Khyalia, Chief Executive Officer of Adani Power. "With our upcoming ultra-supercritical, high-efficiency Pirpainti project in Bihar, we are setting new benchmarks in operational excellence and sustainability. This plant will provide affordable and uninterrupted power to the people of Bihar, catalysing industrialisation, strengthening the state’s economy, and supporting the prosperity of its people. Through projects such as this, Adani Power remains committed to playing a leading role in securing India’s energy future,” the CEO said. The company added that earlier, Adani Power had emerged the winner in a tightly contested Tariff Based Competitive Bidding process called by BSPGCL, offering the lowest supply price of Rs 6.075 per KWh. The company will invest ~$3 billion in setting up the plant and the related infrastructure. The project will generate direct and indirect employment of around 10,000–12,000 during the construction phase and nearly 3,000 once in operation. Adani Power Q1 FY26 Results Adani Power Ltd (APL) reported a 15.53% decline in consolidated net profit at ₹3,305 crore for the June quarter (Q1 FY26), mainly impacted by lower merchant tariffs and elevated operating expenses. The Adani Group entity had a net profit (profit after tax) of ₹3,913 crore in the April-June period of the 2024-25 financial year, a company statement said. The profit in the quarter slipped "on account of lower merchant tariffs and elevated operating expenses following acquisitions," it said. However, on a quarter-on-quarter basis, the net profit was higher by 27.1% due to higher one-time income and continuing EBITDA on a sequential basis. In the first quarter, the company said its "continuing total revenue" fell to ₹14,167 crore from ₹15,052 crore a year ago, primarily due to lower merchant tariff realisation and import coal prices year-on-year. About Adani Power Adani Power (APL) is a part of the Adani portfolio. The company has an installed thermal power capacity of 18,110 MW spread across twelve power plants in Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Madhya Pradesh, Jharkhand, and Tamil Nadu, apart from a 40 MW solar power plant in Gujarat. "With the help of a world-class team of experts in every field of power, Adani Power is on course to achieve its growth potential. "The company is harnessing technology and innovation to transform India into a power-surplus nation and provide quality and affordable electricity for all," the company says. (With inputs from PTI)