The Adani group is eyeing a target of 20,000 mw generation capacity by 2020. This was revealed by Adani group chairman Gautam Adani merely days before the opening of the public issue of group?s first ever power generation venture, Adani Power Limited (APL).

The issue is slated to open on July 28 and will close on July 31. The company intends to mobilise about Rs 2,200 crore through its initial public offering (IPO) of 30,16,52,031 equity shares of Rs 10 each. Adani on Tuesday told newsmen that the price band for the issue would remain between Rs 90 and Rs100 per share.

Adani said, the domestic power sector is reeling under steep shortage. ??There has been huge power shortage in India, which will require new capacity additions in future. Keeping that in mind we peg 20,000 mw power generation capacity target by 2020,?? the chairman said.

However, since the company so far has no history of power generation, there are several risk factors including regulatory, construction, financing and economical viability of the project. But the company seems confident of meeting these challenges.

In an interaction with the FE at the company?s power plant at Mundra, RK Gupta, director, had said, ??Even though we do not have operating history in power sector but we can always learn from others? mistakes. Additionally, we are the only company, which had experience in the two end-operations of coal handling and power trading.

The only link missing was power generation, by which we will become vertically integrated with an edge above other power generating companies in the country.”

Currently, APL has four thermal power projects under construction, with a combined installed capacity of 6,600 MW, which includes Mundra Phase I and II power projects with an aggregate capacity of 1320 MW, Mundra Phase III power project with an aggregate capacity of 1320 MW, Mundra Phase IV power project with an aggregated capacity of 1980 MW and Tiroda power Project in Maharashtra with an aggregate capacity of 1980 MW being developed by company’s subsidiary Adani Power Maharashtra Ltd. The company also plans to develop two power projects with a combined installed capacity of 3300 MW through its subsidiaries, making it a total of 9900 MW of power generation capacity.