LUCKNOW, INDIA: Adani Power Ltd has emerged as the single lowest bidder in a tenders floated recently by the government: the company has bagged an important assignment of 1,500 MW thermal power to the state of Uttar Pradesh.
The good news was made public on Monday, a matter of weeks after the Uttar Pradesh Cabinet gave it a formal stamp of approval. It will construct an ultra-modern thermal power plant operating on the basis of the highly-innovative Design, Build, Finance, Own and Operate (DBFOO) model.
Project was one of the incoming $2 billion (about ₹16,600 crore) project milestones for the company. The new power plant will be 2x800-MW net capacity with a total of 1500 MW-to address the increasing demand for electricity in the state. Adani Power also signed a long-term Power Supply Agreement (PSA) with Uttar Pradesh Power Corporation Ltd (UPPCL) for this project.
As said by S.B. Khyalia, CEO of Adani Power, "We are proud to add to the power horizonation of Uttar Pradesh through this state-of-the-art, low-emission plant. Our focus is on providing reliable, high-quality power by FY30."
The construction phase will create up to 8,000 to 9,000 direct and indirect jobs, while the operational phase will provide around 2,000 permanent jobs.
Despite such a significant win, Adani Power ended the week at ₹513.50, down 1.26% on Friday, for a market capitalisation of approximately ₹1.98 lakh crore. The stock remains volatile, with a beta of 1.6, and is currently trading well below its key moving averages. However, the long-term prospect of growth is still rosy because of this strategic win.
[Source Credit: Business Today ]