Adani Power's Capacity Doubles In Madhya Pradesh After Greenshoe Option

Adani Power Ltd.'s total capacity almost doubled in Madhya Pradesh to 1,600 megawatt from 800 megawatt after state power generating company used a greenshoe option. The company has secured letter of award for a power project from Madhya Pradesh Power Generating Co, the company informed the exchanges.

Greenshoe is an options which companies can use to increase the initial pledged amount. In the Indian power sector, a greenshoe option was exercised for the first time in a tender process. This will help Madhya Pradesh in meeting its ever-growing electricity demand owing to increased industrialization and urbanisation, enhancing energy security for the state, the exchange filing said.

The additional power capacity was awarded at the same tariff of Rs. 5.838 per kilowatt hour. Adani Power will supply power to energy distributors in Madhya Pradesh from a greenfield 1,600 megawatt ultrasupercritical power plant, which will be set up in the Anuppur district of the state.

The plant will be set up under the Design, Build, Finance, Own, and Operate model, the company said in the exchange filing. Adani Power is aiming to commission units within 60 months of the appointed date.

It is investing Rs 21,000 crore towards setting up the plant and related infrastructure, according to the exchange filing. This is the fifth major power supply order for Adani Power in the last 12 months. After this, the total awarded capacity stands at 7,200 megawatt, the exchange filing said.