Gautam Adani-led Adani Power said its subsidiary Moxie Power Generation received a Letter of Award (LoA) from Tamil Nadu Power Distribution Corporation for supplying 558 MW of electricity for five years.
The company, in its regulatory filing, said that the supply will begin from April 1.
Adani Power’s subsidiary wins bid at competitive tariff
Moxie Power emerged as the lowest bidder in a tightly contested bidding process by quoting a tariff of Rs 5.910 per unit.
The power will be supplied from its 1,200 MW thermal power plant in Tuticorin, Tamil Nadu, which operates two units of 600 MW each.
Adani Power moves closer to 100% PPA tie-up
With this contract, both units of the Tuticorin plant are now covered under power supply agreements. As a result, more than 95% of Adani Power’s total operational capacity is secured through medium- to long-term contracts.
The company said this improves long-term revenue visibility and reduces its exposure to short-term volatility in the power market.
Adani Power added that it is targeting close to 100% power purchase agreement (PPA) tie-up for all its operational and under-construction plants over the coming years.
Boost for Tamil Nadu power supply
The new agreement is expected to strengthen Tamil Nadu’s power availability by adding 558 MW of reliable supply to the grid.
The company said the contract will help improve grid stability and support uninterrupted electricity supply to households, businesses, and industries across the state.
“By securing power at a competitive tariff, consumers are expected to benefit from more affordable and dependable energy in the years ahead,” the company highlighted in the press release.
Adani Power is the largest private thermal power producer in India. The Company has an installed thermal power
capacity of 18,110 MW spread across twelve power plants in Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Madhya Pradesh, Jharkhand, and Tamil Nadu, apart from a 40 MW solar power plant in Gujarat.
Adani Power share price
The share price of Adani Power opened in red at Rs 142.80, down 0.87% from the previous close. The stock has gained 20.8% in past six months.