Adani Power's New Flexibility: Domestic Sales Permitted

Adani Power's 1,600 MW coal-fired power plant in Jharkhand can now supply the Indian domestic market following a change in India's power export rules. This provides a safeguard against political instability in Bangladesh, where the plant is contracted to sell all its output.

An amendment to India's power export rules now allows Adani Power's 1,600 MW coal-fired power plant in Jharkhand to supply electricity to the domestic market. The change aims to mitigate political risks in Bangladesh, where the plant is contracted to sell all its output.

The Indian government memo, dated Aug. 12, indicated that the facility could now connect to the Indian grid if there is sustained non-scheduling of capacity. This adjustment occurred shortly after Bangladesh's Prime Minister Sheikh Hasina fled amid violent protests.

The memo also noted that payment delays for export contracts would permit local power sales. Adani Group hailed the amendment as a boost to India's power supply and as a significant achievement in India-Bangladesh relations.