Adani, Torrent Power Bag $3.7 Billion Coal-Based Deals in India
(Bloomberg) -- Adani Group’s power unit and Torrent Power Ltd. secured separate contracts worth a combined 325 billion rupees ($3.7 billion) from the central Indian state of Madhya Pradesh to build coal-fired power plants, underscoring the country’s growing reliance on the fossil fuel to meet its energy needs.
MP Power Management Company Ltd. awarded Torrent Power a 220 billion-rupee contract for a 1,600 megawatt ultra-supercritical plant, according to a stock exchange filing on Saturday. Meanwhile, Adani Power Ltd. won a 105 billion-rupee contract to construct an 800MW coal-based power plant in the state.
Both companies will supply power from these plants to Madhya Pradesh’s distribution company at tariffs just above 5.8 rupees per kilowatt hour, filings showed. Torrent Power said its project marks its largest investment in the sector to date and is expected to generate annual revenue of 65 billion rupees.
The deals highlight India’s increasing dependence on coal — the dirtiest fossil fuel — even as Prime Minister Narendra Modi encourages more investments in clean energy. The country plans to install 500 gigawatts of renewable energy power capacity by the end of the decade, with major corporations committing billions of dollars to support the target.
India is also moving ahead with plans to expand coal-based power capacity. The government’s roadmap, unveiled in late 2023, calls for adding almost 88GW of new coal-based power by early 2032, a 63% increase from an earlier proposal that year.
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