Adani Group to set up 1,600 MW power plant in Mirzapur

United News of India

06-05-2025

Lucknow, May 6 (UNI) The Uttar Pradesh government on Tuesday gave permission to the Adani Group to set up a new thermal project of 1,600 megawatt (MW) in Mirzapur district.
During a meeting chaired by Chief Minister Yogi Adityanath the proposal to set up a 1,600 MW thermal plant in Mirzapur on the basis of competitive minimum bidding of the Adani Group was approved. The new project is expected to come into operation by 2030-31.
The government has decided to buy a total of 1,500 MW of energy from this 1,600 MW capacity thermal project through a bid process for 25 years. The lowest tariff rate of Rs 5.38 per unit has been offered in the bidding process. This will save UP Power Corporation Limited (UPPCL) about Rs 2,958 crore in 25 years.
Sharma said that the new project is much more economical than the existing and upcoming thermal projects. "While electricity is available from projects like Jawaharpur, Obra, Ghatampur and Panki at the rate of Rs 6.6 to Rs 9 per unit, under this project proposed under DBFOO, after the commissioning of the plant in 2030-31, electricity will be available at the rate of only Rs 6.10 per unit," he said.
He said, "To meet the energy demand in the state and to make UP self-reliant, we have decided to buy some energy through a bidding process. In the same sequence, we have moved forward with the 1,600 MW power plant.
The Minister said, "Our condition was that we will buy electricity only when this plant is set up in UP. Under the process, a Request for Qualification was issued in July 2024, in which seven companies participated. Out of these, five companies participated in the Request for Proposal (Financial Bid). After negotiations with the private company which had the lowest quotation among the five companies, they offered the lowest bid of Rs 5.38 per unit including Rs 3.727 per unit in fixed charge and Rs 1.656 per unit in fuel charge, which was accepted."
He said that this private company had done a similar process with Maharashtra in August last year. "Our deal is cheaper than that as well. Not only this, the current deal is cheaper than the big power purchase agreements that we have done before. The electricity of this current process will be much cheaper than the electricity contracts of our public sector power plants," he said.
Sharma said that even when the power plant will be ready in 2030-31, the tariff will be Rs 6.10 which will be cheaper than the electricity of our public plants. "According to a study by the Central Electricity Authority and UP Electricity Regulatory Commission, the state will need about 10,795 MW of additional thermal energy by the year 2033-34. Along with this, a roadmap has also been prepared for 23,500 MW of renewable energy. To meet the demand for thermal energy, the bid process was started under the DBFOO model," he said.
He said that the thermal project will be commissioned in the financial year 2030-31. "This will not only meet the base load energy needs, but industries and domestic consumers in the state will also get stable and cheap electricity," he said.
The Minister said DBFOO, which is Design, Build, Finance, Own and Operate, is a system in which the private company builds, finances, owns and operates the project itself. "The government only provides coal linkage and purchases electricity," he said. UNI AB SSP