Adani Power shares went up by 6.7 percent on Monday after the company received a letter of award (LOA) from the Uttar Pradesh Power Corporation for 1500 MW procurement. This is for a new thermal power project of 1600 MW (2*800 MW) installed capacity. The power supply contract is for a period of 25 years.
Adani Power’s stock closed at Rs 546.6 on Monday, against the previous close of Rs 512 on last Friday.
Adani Power- UPPCL thermal power agreement
In an exchange filing, Adani Power stated that the project is part of the Uttar Pradesh government’s Design, Build, Finance, Own and Operate model. Adani Power said that it has won the project in a highly competitive tender process after bidding the lowest tariff of Rs 5.383 per unit.
The company said that it would invest about $2 billion to set up an Ultra Supercritical Power Plant in Uttar Pradesh. S.B. Khyalia, CEO of Adani Power, said in a statement that the company is planning to set up a low-emission plant in the state, which will begin supplying electricity by the financial year 2030.
Other bids won by Adani Power
This is the second time in the year that the conglomerate has won a power bid by the state government. Earlier, last September, the company won a massive 6600 MW power project deal bid by the Maharashtra government.
The mega-deal comprises setting up a 5000 MW solar power plant and a 1600 MW thermal power plant. The project was later converted into a