Shares of Adani Green Energy and Adani Power Limited recorded a surge of about 6 per cent on Monday after Maharashtra State Electricity Distribution Company Limited (MSEDCL) sent the companies its Letter of Intent for the supply of 6,600 MW hybrid solar and thermal power.
Both companies of the Adani Group will sign separate contracts with MSEDCL for the supply of power.
In what is said to be the world’s biggest solar power capacity award, Adani Green Energy will deliver 5,000 MW (5 GW) of solar power from Khavda in Gujarat. Adani Green has obtained a tariff rate of Rs 2.70 per kWh for 25 years as part of the deal. To be connected to the Inter-State Transmission System, the project will be completed in around three years and in phases, once the company and MSEDCL have signed power purchase agreements.
Adani Power, on the other hand, will supply 1,496 MW thermal power from its upcoming ultra-supercritical facility in Mirzapur, Uttar Pradesh, which will have two units of 800 MW each, for a total capacity of 1,600 MW. This is the biggest thermal capacity award in the country. MSEDCL will enter into a 25-year agreement with Adani Power, whereby delivery of power from the first unit of the facility will start in around three and a half years’ time while the second unit will begin production after four years.
The two companies of the Adani Group obtained the order for supply of power from MSEDCL after a process of competitive bidding. The bidding of the 5,000 MW of solar capacity on behalf of Adani Green Energy was done by Adani Power Limited.