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Adani Power Signs 25-Year Agreement to Supply 1,600 MW to Maharashtra from New Ultra-Supercritical Thermal Power Plant

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Adani Power Signs 25-Year Agreement to Supply 1,600 MW to Maharashtra from New Ultra-Supercritical Thermal Power Plant

India RE News Team Company

Jul 17, 2026

Adani Power Limited (APL) has signed a 25-year Power Supply Agreement (PSA) with the Maharashtra State Electricity Distribution Company Limited (MSEDCL) for the long-term supply of 1,600 MW of electricity from a new 2×800 MW ultra-supercritical thermal power plant. The agreement marks a significant step towards strengthening Maharashtra's future power supply as electricity demand continues to rise across industrial, commercial and residential sectors.

The upcoming generating station will be developed under the Design, Build, Finance, Own and Operate (DBFOO) model, under which Adani Power will be responsible for the complete lifecycle of the project, including construction, financing, ownership and operation. The project is expected to deploy ultra-supercritical technology, which offers higher thermal efficiency than conventional coal-fired plants by operating at elevated steam temperatures and pressures. This enables lower coal consumption and reduced carbon dioxide emissions per unit of electricity generated.

To ensure long-term fuel security, the project has been allocated a coal linkage under the Government of India's SHAKTI (Scheme for Harnessing and Allocating Koyala Transparently in India) Policy. The SHAKTI framework provides transparent allocation of domestic coal to eligible power producers, helping improve fuel availability, reduce dependence on imported coal and support affordable electricity generation for distribution companies.

The agreement follows Adani Power's earlier disclosure in March 2026, when the company informed stock exchanges that it had emerged as the successful bidder for supplying 1,600 MW of thermal power to MSEDCL through a competitive bidding process. The execution of the long-term PSA formalises the commercial arrangement and provides the contractual foundation for development of the new generating facility.

The project is expected to play an important role in meeting Maharashtra's growing electricity requirements. As one of India's largest industrial and manufacturing hubs, the state has witnessed sustained increases in power demand driven by expanding urbanisation, industrial development, infrastructure projects and the rapid growth of data centres and commercial establishments. Long-term power procurement agreements help distribution utilities secure reliable baseload electricity while ensuring greater supply stability for consumers.

Although India is rapidly expanding renewable energy capacity, thermal power continues to provide a significant share of the country's electricity generation and remains essential for maintaining grid reliability. High-efficiency coal-based plants equipped with ultra-supercritical technology are increasingly being deployed to replace older, less efficient units, supporting cleaner and more efficient thermal generation while complementing variable renewable energy sources such as solar and wind.

The latest agreement further strengthens Adani Power's long-term generation portfolio and reflects continued investments in high-efficiency thermal infrastructure aimed at supporting India's evolving energy mix. By combining advanced generation technology with assured domestic coal supply under the SHAKTI policy, the project is expected to contribute to reliable electricity availability while supporting Maharashtra's long-term energy security and economic growth.