Mumbai, July 7, 2025:
In a major strategic move aimed at consolidating its thermal power portfolio, Adani Power Ltd. (APL) has acquired a coal-fired power plant in Vidarbha, Maharashtra, for Rs 4,000 crore. The acquisition marks another milestone in Adani Power’s aggressive expansion strategy in the Indian energy sector.
The deal, finalised earlier this week, involves the purchase of a 1,320 MW operational thermal power project located in Vidarbha. This acquisition is part of the group’s broader plan to secure fuel security, ensure grid stability, and strengthen its power supply commitments across western and central India.
Key details of the acquisition
- Asset acquired: 1,320 MW (2×660 MW) coal-based thermal power plant
- Location: Vidarbha region, Maharashtra
- Deal size: Rs 4,000 crore
- Seller: The identity of the selling entity has not been officially disclosed but is believed to be a stressed asset under lenders’ resolution.
- Funding route: Combination of internal accruals and structured long-term debt.
- Transaction structure: Asset purchase through a special purpose vehicle fully owned by Adani Power.
Why Vidarbha?
Vidarbha is Maharashtra’s power-generation heartland due to its proximity to rich coal reserves. The acquisition gives Adani Power:
- Strategic location advantage: Closer to Western Coalfields’ mining clusters, reducing logistics costs.
- Boost to regional power supply: The plant’s integration will help Adani meet peak demand requirements across Maharashtra, Gujarat, and central India.
- Operational synergies: Adani Power operates existing thermal assets in Tiroda (Maharashtra) with similar configurations, enabling shared technical and maintenance resources.
Adani Power’s portfolio after acquisition
| Region | Existing Capacity (MW) | New Acquisition (MW) | Total (MW) |
|---|---|---|---|
| Gujarat | 4,620 | – | 4,620 |
| Maharashtra | 3,300 | 1,320 | 4,620 |
| Rajasthan | 1,320 | – | 1,320 |
| Karnataka | 1,200 | – | 1,200 |
| Jharkhand | 1,600 | – | 1,600 |
| Total | 12,040 | 1,320 | 13,360 |
This acquisition pushes Adani Power’s total installed capacity to 13,360 MW, making it one of India’s largest private thermal power producers.
Strategic goals behind the acquisition
Speaking about the transaction, a senior Adani Group executive said:
“This acquisition is aligned with our strategy to expand capacity in core operational clusters. It ensures improved fuel security, enhances grid resilience, and supports industrial growth in Maharashtra.”
Key strategic goals include:
- Securing long-term power purchase agreements (PPAs) with Maharashtra state distribution companies.
- Leveraging operational expertise to improve plant load factor (PLF) and reduce downtime.
- Integrating logistics and coal sourcing with Adani’s mining, port, and rail assets for cost optimisation.
Analysts’ views
Energy sector analysts welcomed the deal, highlighting:
- Attractive valuation: At Rs 4,000 crore, the acquisition price translates to approximately Rs 3 crore per MW, considered competitive for an operational asset with available evacuation infrastructure.
- Asset quality: The plant is relatively new, commissioned between 2016-2018, requiring limited refurbishment costs for Adani to ramp up utilisation.
- Strengthened market position: The move consolidates Adani Power’s presence in a crucial industrial state, complementing its renewable and transmission investments in western India.
Sector context: Rising thermal power demand
The acquisition comes at a time when India is witnessing a renewed push for thermal power due to:
- Record peak demand: Summer 2025 saw India’s peak demand cross 250 GW, with thermal plants operating at high PLFs to balance intermittent renewable supply.
- Grid balancing needs: Even as renewable capacity rises, coal power remains critical for grid stability during low solar/wind generation periods.
- Coal availability assurance: The government has boosted domestic coal production targets to reduce imports, improving fuel supply confidence for thermal plants.
Future plans and capacity expansion
Adani Power is expected to:
- Ramp up PLF at the Vidarbha plant to over 85% within 12 months post-integration.
- Explore potential brownfield expansion to add an additional 660 MW unit in the same location, subject to regulatory approvals and coal linkages.
- Integrate with Adani Electricity Mumbai’s grid management, leveraging synergies in distribution and generation.
ESG concerns and Adani’s response
Despite ESG-driven divestment trends globally, Adani Power maintains that thermal power remains crucial for India’s energy security. The company reiterated its commitment to:
✅ Invest in emission control upgrades, including flue gas desulphurisation (FGD) systems.
✅ Offset carbon footprint through large-scale renewable investments under Adani Green Energy Ltd.
✅ Work towards net-zero commitments by increasing clean energy share to 45% of group capacity by 2030.
Broader implications for India’s power sector
| Metric | India Total | Adani Power Share Post-Acquisition |
|---|---|---|
| Installed thermal capacity | ~240 GW | ~5.5% |
| Total installed capacity | ~430 GW | ~3.1% |
This table shows that while Adani Power remains a fraction of India’s total installed capacity, it is among the largest private sector contributors, second only to NTPC among consolidated power producers.
Conclusion
The Rs 4,000-crore Vidarbha acquisition strengthens Adani Power’s position in India’s energy sector, aligning with its strategy of integrated growth and regional consolidation. The move underscores the group’s belief that thermal assets remain essential alongside its ambitious renewable capacity expansion, positioning it as a dominant force in India’s energy transition journey.
Disclaimer: This news article is for informational purposes only. It does not constitute investment advice. Readers are advised to consult certified financial experts before making investment decisions in equity markets or sector-specific assets.
