Adani Power, India’s private-sector thermal power producer, has secured a major contract to supply 1,500 MW of electricity to Uttar Pradesh. The company emerged as the winner of a highly competitive bidding process, offering power at a tariff of Rs 5.383 per unit, it announced on Saturday.

The power will be delivered from a new 2x800 MW (net capacity 1,500 MW) ultra-supercritical thermal power plant to be constructed within Uttar Pradesh. The facility will be developed under the Design, Build, Finance, Own, and Operate (DBFOO) framework, reflecting a long-term commitment by the company to boost energy infrastructure in the state, it said.

This development follows the Uttar Pradesh state cabinet’s recent approval of the project earlier in May. With the Letter of Award (LoA) issued, Adani Power is now set to sign a long-term Power Supply Agreement (PSA) with the Uttar Pradesh Power Corporation Ltd. (UPPCL).

“We are happy to have won the competitive bid to supply 1,500 MW of power to UP state and feel privileged to play a leading role in meeting the state’s rapidly growing power demand. We plan to set up a modern and low-emission Ultra-supercritical plant in UP and aim to begin supplying reliable and high-quality power by FY30,” said S.B. Khyalia, Chief Executive Officer, Adani Power.

Boost For The Local Economy

The project represents an investment of approximately $2 billion (around Rs 16,600 crore) and is expected to create between 8,000 and 9,000 jobs during construction. Once operational, the plant will employ roughly 2,000 people directly and indirectly, contributing to the local economy.

Uttar Pradesh's thermal power demand is projected to grow by around 11,000 MW by 2033-34, driven by rapid industrialisation, urban expansion, and infrastructure development. This new power supply contract aligns with the state government's broader strategy to meet rising demand through long-term power procurement.

This marks Adani Power’s second major win within a year. In September 2024, the company received a Letter of Intent for a combined 6,600 MW supply (including 1,600 MW thermal and 5,000 MW solar) from Maharashtra’s state power distribution company, which has since been formalised into a PSA.