New Delhi: Adani Power is staking its claim as a frontrunner in India’s expanding thermal power journey, locking in 11.2 GW of new capacity, reviving dormant assets, and securing power deals ahead of the government’s revised 95 GW thermal expansion target. “We are firm believers in the promise of the power sector, which is closely aligned with India’s economic prospects,” SB Khyalia, CEO of Adani Power, said during the Q1 FY26 earnings call. “We are confident that the path to a secure and sustainable energy future passes through the thermal power landscape and that coal will continue to be an important energy source for many decades to come,” he said.
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Speaking to analysts after the company’s Q1FY26 results, Khyalia said the 11.2 GW includes a mix of reactivated idle units, ongoing projects and fresh power purchase agreements (PPAs) signed under long-term contracts. “With this vision, we have locked in the supplies of boilers, turbines and generators for the entire 11.2 GW new capacity addition. We are also tying up contracts for erection and commissioning, Balance of Plant, etc., in a phased manner for the upcoming projects,” Khyalia told investors.
With surging power demand expected to outpace power generation capacity addition, the Indian government has raised its thermal addition target from 80 GW to 95 GW by 2034-35. Khyalia sees this as a strategic opening for well-positioned private players. He emphasised, “Given India’s economic growth prospects, we anticipate power deficits to arise once again as demand improves across the nation… financially strong and experienced private sector players are ideally positioned to capitalise on it.”
Moving fast to capitalise on the opportunities, Adani Power has already locked in land parcels for future thermal power projects and plans to fund these projects through its own cash flows. “As you would be aware, we already possess all the land required for expansion, which is a result of the foresight employed in identifying this opportunity in advance and acquiring the right resources at the right locations. We are funding these projects mostly from our own cash flows, which removes the reliance on project lenders. We also have a proven in-house project management capability and an experienced team which will help us monitor and execute these projects efficiently,” Khyalia said.
Already, Adani Power has broken ground on nearly half of its 12,520 MW thermal power capacity ambition, the horizon for which is 2030: Mahan Phase II (Madhya Pradesh): 66 percent executed, Raipur Phase II (Chhattisgarh): 25 percent executed, Raigarh Phase II: 20 percent executed and Korba Phase II: Environmental clearance obtained, according to information shared by Khyalia.
Adani Power is not just planning capacity expansion, it’s also busy securing demand. A recently signed long-term PPA with a Uttar Pradesh distribution company for 1,600 MW raises its fresh capacity tie-up to 4,520 MW. The company is also actively bidding in tender processes across Bihar, Madhya Pradesh, Rajasthan, and Uttarakhand, leveraging first-mover advantages and the government’s SHAKTI policy for coal linkages.
“When the Discoms invite these bids, they indicate the mines from which coal will be supplied… the new risk-mitigated model of the PPA will generate attractive returns for the developers that are able to set up projects on time with control on capital costs,” Khyalia noted.
On the cost front, Adani Power welcomes recent regulatory easing around Flue Gas Desulphurisation (FGD) norms. “After this notification has come, the power stations which are under planning and execution, where we have not started the execution of FGD, do not have a requirement of FGD now… In two power stations, one at Mahan and another at Raipur, FGD installations are in advanced stage of execution, and therefore, we will continue to execute the FGDs there. In the rest of the power plants, we will not execute them, and to that extent, project cost will go down,” added Khyalia.
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Adani Power’s aggressive front-loading of capacity, financing, and contracts positions it as a thermal powerhouse well ahead of the government’s target curve. In Khyalia’s words: “We are highly enthused by the thermal power investment opportunity. … Adani Power will play a key role in attaining the targeted capacity addition of 80 GW or more by the country.”
