Adani Power (NSE: ADANIPOWER) has secured a Letter of Award (LoA) from Maharashtra State Electricity Distribution Company Limited for the long-term supply of 1,600 MW of electricity from one of its upcoming ultra-supercritical thermal power projects, the company announced on March 15.
The award follows a competitive bidding process in which Adani Power emerged as the lowest-tariff bidder, offering power at a combined tariff of INR5.30 ($0.057) per kWh. Electricity supply under the proposed 25-year Power Supply Agreement (PSA) is scheduled to begin in FY2030–31.
The contract adds to a series of long-term agreements secured by the company amid renewed investment activity in India’s thermal power sector. During FY2025–26, the company has won five long-term PSA tenders totalling 10,400 MW of capacity.
With the latest award, the company has tied up 13.3 GW of long-term PSAs from its 23.8 GW capacity pipeline currently under development, advancing its strategy of securing most of its future generation under long-duration contracts. More than 95% of the company’s existing operating capacity of 18.15 GW is already committed under medium- to long-term PSAs, while over 55% of its upcoming capacity is backed by 25-year agreements, strengthening revenue visibility.
The tender issued by MSEDCL includes a pre-determined coal linkage, providing long-term fuel supply security and helping ensure stable and cost-efficient power generation.
The contract comes as the company continues with a major expansion programme aimed at nearly doubling its generation capacity from 18.15 GW to 41.87 GW by FY2031–32.
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