Adani Power emerges lowest bidder for Assam's 3.2 GW coal power tender

Adani Power Limited has emerged as the lowest bidder in a tender floated by the northeastern state of Assam for a 3.2 gigawatt (GW) coal power supply project. The company announced this development following its post-earnings call, adding that the bid has already secured regulatory approval from the state electricity commission. Adani Power expects formal communication regarding the award of the contract shortly.

This tender is a component of Adani Power's ambitious expansion plans, which include participating in bids for over 22 GW of thermal power capacity across several Indian states such as Rajasthan, Uttar Pradesh, Gujarat, and West Bengal. These states are looking to secure reliable, long-term energy supply to meet rising electricity demand and complement intermittent renewable energy sources.

Adani Power is significantly scaling up its operations, aiming to increase its total installed capacity to 42 GW by fiscal year 2032, a substantial rise from its current 18 GW. Approximately 8.5 GW of this capacity is already secured under long-term Power Purchase Agreements (PPAs). The company plans to invest roughly 2 trillion rupees in this expansion, with the first 12 GW expected to be commissioned by fiscal year 2030. To facilitate this growth, Adani Power has pre-ordered essential equipment like boilers, turbines, and generators, with staggered deliveries scheduled over the next 38 to 75 months.

In a separate positive development, the company's power dues from Bangladesh have decreased significantly, narrowing to cover just 15 days of supply, a marked improvement from approximately $900 million in May and nearly $2 billion earlier this year.

Impact: Winning this tender strengthens Adani Power's position in the Indian energy market and contributes to the nation's energy security. The substantial investment and capacity expansion plans signal confidence in future demand and the company's ability to execute large-scale projects. The reduction in Bangladesh dues improves cash flow and financial stability.

Definitions: * Gigawatt (GW): A unit of power equal to one billion watts. It's commonly used to measure the capacity of large power plants. * Baseload capacity: The minimum level of electricity demand required over a period of time. Power plants providing baseload capacity run constantly to meet this consistent demand. * Power Purchase Agreements (PPAs): Contracts between electricity generators and buyers (like utilities) that define the terms of electricity sale, including price and duration. * Fiscal Year (FY): A 12-month period used for financial reporting. In India, it runs from April 1st to March 31st.