Adani Power to build Rs1,500,000-cr plant in Jharkhand

Adani Power Ltd will soon sign an agreement to set up a Rs1,500,000-crore ($2.2 billion) coal-based power project in Jharkhand, as the company looks to double its power generation capacity by 2020, reports quoting sources close to the development stated.

The Gautam Adani-led company plans to build two power units with a total capacity of 1,600 megawatts (MW). Construction is expected to begin by December, sources said, adding a deal is likely to be sealed this month.

Reports quoting one of the sources said most of the approvals are in place and the signing of the deal at a meeting to be convened next week.

There was, however, no confirmation from Adani Power, which did not respond to a request for comment.

Power generated from the Jharkhand units would be sold to power-deficient Bangladesh, where Gautam Adani is trying to expand operations in the energy and infrastructure sectors.

Adani Enterprises Ltd, the parent company, which is embroiled in $7-billion coal mine dispute with environment groups, plans to double its power generating capacity in the country to 20,000 MW by the end of the current decade.

Adani Power on Wednesday reported consolidated profit (EBIDTA) of Rs1,824 crore for the October-December 2015-16 quarter.

Consolidated total income for Q2FY16 increased by 39 per cent to Rs5,784 crore against Rs4,175 crore in Q2FY15. Consolidated EBIDTA for Q2FY16 stood at Rs1,824 crore against Rs1,243 crore in Q2FY15, up 47 per cent.

The company sold 15.10 billion units in Q2FY16 against 10.49 billion units sold in Q2FY15.

The company's shares rose as much as 4.4 per cent to Rs26.35 following the news of the Jharkhand power project.