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Adani Power Ltd has recently received government approval to begin mining operations at its Dhirauli coal block in the Singrauli district of Madhya Pradesh, a critical move expected to bolster the coal supply for its nearby Mahan Power Plant. Alongside this, the company has outlined ambitious production targets for the mine and confirmed peak production expectations, alongside the expansion of supply to the Mahan plant. The developments mark important milestones in Adani Power's growth and resource consolidation strategy.
Key Developments Around Dhirauli Mine Operations
The Ministry of Coal has granted Adani Power a 30-year lease to operate the Dhirauli coal block, confirming authorization to start mining activities.
Peak production capacity at the Dhirauli mine is projected at 6.5 million tonnes per annum (MTPA), with 5 MTPA targeted through open cast mining techniques.
Underground mining operations are planned to commence nine years after the start of open cast mining, ensuring long-term coal supply to support power generation.
Geological surveys indicate the Dhirauli block holds a substantial gross geological reserve of 620 million metric tonnes and net reserves approximating 558 million metric tonnes, ensuring sustained fuel availability.
Coal extraction from Dhirauli is to significantly support the 1,200 MW Mahan Power Plant as well as fulfill merchant power needs.
Mahan Power Plant Supply and Expansion Outlook
The Dhirauli coal block's coal will primarily fuel the Mahan Power Plant, ensuring a consistent and secure raw material supply chain.
The Mahan Power Plant, located in the Singrauli district, currently operates at 1,200 MW capacity. Plans are underway to expand generation capacity by an additional 3,200 MW.
Production at the Dhirauli mine will integrate logistics with a planned 4.6 km conveyor belt to transport coal efficiently to the power plant site by December 2026, supplemented by railway transport for remaining coal.
The mine operations and plant expansion reinforce Adani Power's position as India's leading private-sector thermal power producer.
Environmental and Regulatory Context of Dhirauli Mine
The Dhirauli mining project has received numerous government approvals including mining and environmental clearances, reflecting its compliance with regulatory standards.
Concerns have been raised by government bodies regarding forest clearance and environmental impact, especially noting the displacement of forest land and communities relying on these areas.
Despite these concerns, the government has provided conditional clearances advancing the project while critically addressing environmental and social issues.
Production Capacity Goals for Fiscal Year 2027
Peak rated open cast production capacity is targeted to be fully achieved by FY27, positioning the Dhirauli mine as a key coal supplier for Adani Power.
This projected capacity supports operational stability and the strategic expansion of power generation capabilities in the region.
Contract Awards Supporting Expansion
Adani Power's subsidiary, Mahan Energen Limited, has secured significant contracts for construction and infrastructure development supporting the Mahan Power Plant expansion, highlighting strong business growth activity.
Overall Impact and Future Prospects
Adani Power's recent approval to commence operations at the Dhirauli coal mine marks a pivotal advancement in securing coal resources necessary for uninterrupted power generation. Coupled with the planned expansion of the adjacent Mahan Power Plant, these developments signify an important leap in capacity and supply reliability. While environmental concerns remain a topic of discussion, the regulatory green light positions Adani Power to consolidate its leadership in India's private thermal power sector with a focus on integrated mine-to-plant supply chain efficiencies.
Sources: Economic Times, Business Standard, AdaniWatch, MoneyControl, Power Technology, Global Energy Monitor, Business Upturn, ScanX Trade
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