Company Overview

Adani Power Limited (APL, NSE:ADANIPOWER), a part of the diversified Adani Group, is the largest private thermal power producer in India. Adani Power has a power generation capacity of 12,450 MW comprising thermal power plants in Gujarat, Maharashtra, Karnataka, Rajasthan, and Chhattisgarh and a 40 MW solar power project in Gujarat.1

Adani Power was the world’s first company to set up a coal-based Supercritical thermal power project registered under the Clean Development Mechanism (CDM) of the Kyoto protocol. Being a new entrant to power generation in 2006, the company leveraged the project management skills of the Adani Group to set up its first power plant at Mundra successfully and efficiently.

The power sector in India has undergone a challenging period in the past few years, which put to test the resilience of its business model. By navigating the challenges through prudence, persistence and discipline, Adani Power has implemented the best available technologies and practices that can serve as benchmarks for the power industry.

As the company augment its generation capacity, both organically and inorganically, the company also strive to make its footprints sustainable. Receiving a percentile score of 65 for AdaniPower in Corporate Sustainability Assessment by DJSI-S&P Global and a leading position in India and number 30th in world in ESG benchmarking for 2019, makes it more committed for Growth with Goodness. This ESG score is testimony of the company’s corporate sustainability practices.

Operational Power Plants

Adani is the largest private thermal power producer in India with an installed capacity of 12,450 MW. The company's Seven power projects are spread out across the states of Gujarat, Maharashtra, Rajasthan, Karnataka and Chhattisgarh.2

Mundra, Gujarat

Capacity : 4620 MW

Adani Power created history by synchronising the first super-critical technology based 660MW generating unit at Mundra. This is the first super-critical generating unit in India. The Mundra power project is also the fastest project implementation ever by any power developer in the country with a record completion of inception to synchronisation within 36 months. Phase III of the Mundra Project, which is based on supercritical technology, has received ‘Clean Development Mechanism (CDM) Project’ certification from United Nations Framework Convention on Climate Change (UNFCCC). This is the world’s first thermal project based on supercritical technology to get registered as a CDM Project under UNFCCC.

Tiroda, Maharashtra

Capacity: 3300 MW

With its total capacity of 3300 MW, Tiroda comprises of 5x660 MW units. All units at this location are of Supercritical Technology, driving efficiency in coal based power generation.

Tiroda uses latest technology for environmental management and has been registered under CDM by UNFCCC.

Adani Power Maharashtra Limited is the largest coal based Thermal Power Plant in the state of Maharashtra, India. The plant has a capacity to generate 3300 MW power through its 5 units of 660 MW capacity. The first unit of the plant was commissioned on 28th August 2012 and subsequently other units were commissioned. The plant achieved full capacity with the commissioning of Unit V on 11th October 2014.

Kawai, Rajasthan

Capacity : 1320 MW

Adani Power Rajasthan Limited (APRL) is the largest power producer plant in Rajasthan at a single location with a generation capacity of 1320 MW (2X660 MW). It is coal-based thermal power plant on supercritical technology.

For immediate connectivity, Kawai has a 1500m long air strip and is using state of the art technology for environment management.

Udupi, Karnataka

Capacity : 1200 MW

Udupi Power Corporation Limited is a 2 X 600 MW imported coal based power project in the Udupi District of Karnataka.

Situated in the western coastal region of India, the plant is situated in the village of Yellur, between Mangalore and Udupi.

UPCL is the first independent power project (IPP) using 100% imported coal as fuel in the country and was awarded the Gold Shield award for early completion of Thermal power project Unit-1 from Ministry of power, Government of India in FY 2010-11 and also the prestigious Golden Peacock Environment Management Award in FY 2014-15.

The Udupi Power Project supplies 90% of the power it generates to the State of Karnataka and 10% to the State of Punjab.

Bitta, Gujarat

Capacity : 40 MW

Adani Group, commissioned a 40 MW, solar power plant in Bitta, Kutch district, Gujarat in December 2011. It was commissioned in a record time of 165 days. This solar power plant marked Adani’s first big foray in the renewable energy sector.

Upcoming Power Plants

More than 7000 MW capacity power generation plants are in making. The company's planned projects are spread across the states of Jharkhand, Madhya Pradesh, Gujarat, Rajasthan and karnataka3

Godda, Jharkhand

Capacity : 1600 MW

Adani Group is setting up Thermal Power Project of 1600 MW (2 X 800 MW) through its SPV Adani Power (Jharkhand) Limited.

All the units are based on ultra-supercritical technology

Chhindwara, M.P

Capacity : 1320 MW

Adani Group is planning to setup Pench Thermal Power Project of 1320 MW (2 X 660 MW). In line with group’s commitment to the environment all the units are based on supercritical technology.

Environmental Clearance was granted on 16.10.2012 for the Project.

Dahej, Gujarat

Capacity : 2640 MW

Adani Group is planning to setup Dahej Thermal Power Project of 2640 MW (4 X 660 MW) through its SPV Adani Power Dahej Limited.

All the units are based on supercritical technology. Environmental Clearance was granted on 26.10.2011 for the Project

Udupi Expansion, Karnataka

Capacity : 1600 MW (2 X 800 MW)

Adani Group is planning for expansion of Udupi Thermal Power Station by addition of 1600 MW (2 X 800 MW) in existing capacity of 1200 MW through its SPV Udupi Power Corporation Limited. In line with group’s commitment to the environment, both the units will be based on supercritical technology.

Kawai Expansion , Rajasthan

Capacity : 1600 MW (2 X 800 MW)

Adani Power Rajasthan Limited (APRL), a subsidiary of Adani Power Limited (APL) is planning for Kawai Expansion by addition of 1600 MW (2X800 MW). The expansion units shall be based on supercritical technology.

Industry Overview

India is one of the largest electricity generation markets in the world, presenting growth opportunities for both domestic as well as international investors. According to the BP Statistical Review (2019), India was the world’s third largest producer of electricity in 2018.4

India’s power sector has made significant inroads over the last decade, growing its installed capacity from ~200 GW in FY 2011-12 to ~370 GW in FY 2019-20.

In terms of fuel mix, ~62% of the total installed capacity as of March 2020, and ~ 76% of the total generation is thermal, indicating India’s dependence on conventional fuel sources. Coal-fired (including lignite) thermal power plants accounted for more than 55% of the total installed capacity.

In terms of ownership mix, as of March 2020, the private sector contributes ~ 46.8% of India’s installed capacity. This proportion has increased from ~ 27.2% in FY 2011-12 owing to continued strong growth in demand and initiatives of the government to encourage private sector participation in power generation.

Energy requirement and peak availability

Energy deficit in India decreased from an interim high of 8.7% in FY 2012-13 to 0.5% in FY 2019-20. Peak deficit decreased from an interim high of 10.6% in FY 2011-12 to 0.7% in FY 2019-20.

Improvement in the power deficit situation signifies the success of various policy initiatives and capital investments made across the business segments. However, India’s per capita consumption still remains well below its peers like China and Brazil and is less than one-third of the global average (as of December 2017). India’s per capita electricity consumption was 1,181 KWh in FY 2019-20.

Demand for electricity is on the rise as India’s economy gains in global importance. Various factors contributing to the rising per capita consumption, include:

  • improvement of electrification in villages;
  • GDP growth and general economic activity; and
  • growth in consumer electronic device penetration

The 19th Electric Power Survey projects demand to grow from 1,275 TWh in FY 2018-19 to 2,047 TWh in FY 2026‑27, with peak demand growing from 177 GW to 299 GW in the same period.

Power consumption

India’s Northern and Western regions accounted for majority of its energy requirements in FY 2019-20 at 30% and 31% respectively, while the Southern region accounted

27%, and the Eastern and North-Eastern region together constitute the balance 13% of national energy requirement.

Rising penetration of renewable sources and heavy monsoons, along with a slower economic growth, have resulted in a tempering of demand for thermal power. PLF of thermal power plants stood at 56.1% during FY 2019‑20, versus 60.7% in FY 2017-18 and 61.1% in FY 2018-19. At the same time, various reforms initiated over the last few years are starting to show results, and are expected to help improve power demand gradually. Some key statistics related to the sector are:

  • India is 100% electrified and, as per government data, all willing households have been connected to grid-based electricity, following the ambitious Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGYA) initiatives
  • Aggregate Technical & Commercial (AT&C) losses (March 2020) was recorded at 19.01% vis-à-vis a targeted 15% as envisaged under the Ujwal DISCOM Assurance Yojana (UDAY), scheme for March 2019 is a concern. Few major SAUBHAGYA beneficiary states, including J&K, UP and Bihar continue to have AT&C losses over 25%
  • Share of generation for Renewable Energy Systems (RES) rose gradually from 8.6% in FY 2018-19 to 9.2% in FY 2019-20

Coronavirus impact

In the wake of the coronavirus outbreak, the Government of India imposed a country-wide lockdown, during which the following steps were undertaken for seamless functioning of the power sector:

The Ministry of Power advised power generators and transmission utilities, along with various administrative bodies to ensure that the generation and transmission of power, which are essential services, continue uninterrupted. Steps to ensure uninterrupted movement of fuel, raw materials and spares, machinery, and manpower were also covered.

Various steps were taken to ease liquidity constraints felt by DISCOMs due to the COVID-19 lockdown, such as the ` 90,000 Crore package for loans against DISCOM receivables from PFC and REC, and temporary reduction in payment security mechanism and late payment surcharges for eligible PPAs The RBI also issued guidelines to Banks, FIs, and NBFCs to provide moratorium on term loan instalments and interest, as well as interest on cash credit, for a period of three months, and easing of working capital financing norms, to maintain liquidity in the financial system and prevent defaults by borrowers In order to provide relief to thermal power generators and increase liquidity in the system. Coal India Ltd. has also allowed the facility of Usance Letter of Credit to power plants for payment of coal instead of the existing requirement of cash advance for supply of coal under Fuel Supply Agreements (FSA).

Coal demand and supply

Over the years, overall coal consumption has increased continuously. However, FY 2019-20 witnessed a decline in domestic coal consumption due to tepid growth in power demand, and higher generation from renewable energy sources, including hydropower.

Coal production in India during FY 2019-20 registered a small growth of 1.2% at 738 MT vis-à-vis 729 MT in FY 2018‑19. In comparison, coal production had grown by 2.4% in FY 2017-18 and 7.6% in FY 2018-19. Coal India Ltd. (CIL) and Singareni Collieries Company Limited (SCCL) produced 666 MT of coal in FY 2019-20 as against 671 MT in FY 2018-19. However, coal offtake from both the producers reduced by 4.7%, down from 676 MT in FY 2018-19 to 644 MT in FY 2019-20. The offtake of coal by the power sector from the two suppliers was lower by 5.7%, down from 547 MT in FY 2018-19 to 516 MT in FY 2019-20.

A slowdown in offtake of coal was observed in March 2020 due to the slump in demand after emergence of the coronavirus crisis led to a higher inventory of domestic coal. Coal stocks at thermal power plants of the country have risen to the highest-ever inventory of 52 MT at the end of March 2020, sufficient for 28 days. Coal inventory at mines also increased steeply to 80 MT, equivalent to 40 days of requirement.

Coal imports have been increasing through the last few years, with slower than expected growth in domestic production and rising demand from power and other sectors.

Slowdown in the demand for thermal coal from China during 2019 has impacted international coal prices significantly. HBA prices for March 2020 were 26% lower y-o-y at $67.1/Tonne, while Newcastle coal prices were 43% lower at $64/Tonne.

SWOT analysis


  • Proven capabilities in undertaking the execution of large power projects based on modern technology, with adherence to time and cost limits
  • Demonstrated capability of turning around stressed power projects after acquisition
  • Committed and agile teams with deep sector experience and domain expertise in O&M, power sector regulation, project management, and business development
  • The only Independent Power Producer in India with inhouse, mine-to-plant logistics capability
  • Mix of coastal, pit-head and hinterland projects in major demand centres and close to fuel source
  • Competitive tariffs allowing a comfortable Merit Order Despatch position and high levels of offtake
  • More than 74% of installed and upcoming greenfield capacity tied up in long-term PPAs with availabilitybased tariff mechanism, ensuring revenue stability and recovery of capacity costs
  • Fuel cost pass through in majority of imported coalbased PPAs, providing stability to cash flows and support to profitability
  • 84% of domestic coal requirements tied up in long-term Fuel Supply Agreements (FSAs), providing long-term visibility on fuel security
  • Regulatory approvals for carrying cost, along with late payment surcharge mechanism, provide protection against delays in award of regulatory claims and payment from power procurers


  • Dependence on monopolistic state-owned coal suppliers for domestic coal requirements exposes the Company to disruptions in fuel availability
  • Some PPAs based on domestic coal supply do not provide escalation for coal price increases, while in other cases, escalation is partial
  • Events of change in law are compensated through the regulatory process, which can take significant time, and expose the Company to cash flow mismatches in the interim
  • 26% of capacity is untied and subject to short-term market risk, without stable domestic fuel supply


  • Stressed power assets with locational advantage available at attractive valuations, providing an opportunity to expand capacity while avoiding execution risk
  • Anticipated demand growth spurred by economic growth as well as government reforms such as Ujwal DISCOM Assurance Yojana (UDAY), Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGYA), and Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY)
  • Limited amount of new thermal power capacity to be installed over the coming years, while base load demand is expected to increase with a growing economy. This will create opportunities for both merchant power and long-term tie-ups.
  • Improving demand and coal supplies will lead to improvements in PLFs


  • Increasing preference globally and in India for renewable power, especially solar power, could constrain growth prospects for thermal power generation in the long run
  • Reluctance of state DISCOMs to tie up power demand through long-term PPAs, in view of subdued rates in merchant and short-term markets
  • Volatility in international coal prices may affect the Merit Order Position of PPAs with coal price pass through, leading to lower capacity utilisation
  • Inability of domestic coal miners to raise production in line with demand growth could impact capacity utilisation and increase dependence on imported coal

Financial Highlights

April 27, 2020; Adani Power Ltd, announced the financial results for the quarter and financial year ended March 31, 2020.5

Performance during year ended 31st March 2020

Average Plant Load Factor (PLF) achieved during the year ended 31st March 2020 was 68%, as compared to 64% achieved in the previous year. The PLF was higher despite Annual Overhaul (“AOH”) and Capital Overhaul (“COH”) of 11 units during the year compared to 4 units in the previous year due to higher domestic coal materialization and execution of Supplementary Power Purchase Agreement (“SPPA”) in Adani Power (Mundra) Ltd. (“APMuL”).

Units sold during the year were 16% higher at 64.1 Billion Units (BU) as compared to 55.2 BU sold during the previous year, due to higher PLF and sale of power of 4.3 BU from Raigarh Energy Generation Ltd. (“REGL”) and Raipur Energen Ltd (“REL”).

Consolidated total income for the year ended 31st March 2020 stood 5.6% higher at Rs. 27,842 Crore as compared to Rs. 26,362 Crore in the previous year.

Consolidated EBITDA for the year declined to Rs. 7,059 Crore from Rs. 7,431 Crore in the previous year. The EBITDA includes net regulatory income pertaining to prior periods of Rs. 1,285 Crore during the year ended 31st March 2020, compared to Rs. 2,864 Crore in the previous year based on the regulatory orders received during the respective periods. Further, the EBITDA for the year includes onetime provision of Rs. 329 Crore compared to Rs. 145 Crore in the previous year.

Depreciation charge for the year was Rs. 3,007 Crore, after incorporating the consolidation of REL and REGL, as compared to Rs. 2,751 Crore for the previous year.

The loss after tax and exceptional items for the year ended 31st March 2020 was Rs. - 2,275 Crore, as compared to loss after tax and exceptional items of Rs. - 984 Crore for the previous year. The loss for the year includes exceptional item of Rs. 1,003 Crore, pertaining to the write off of certain receivables and advances, owing to the acceptance of resolution plan submitted by the company for acquisition of Korba West Power Co. Ltd., which is now renamed to REGL.

The Total Comprehensive Loss after Tax for the year ended 31st March 2020 was Rs. - 2,264 Crore for FY20, as compared to a Total Comprehensive Loss of Rs. - 992 Crore for the previous year.


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Created by Asif F on 2020/07/13 17:48
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