Adani Group to invest $2bn to set up power plant in Odisha, India

Adani Group plans to invest $2bn to construct a 2,500MW power facility in the Indian state of Odisha, aimed at bolstering the company’s capacity by 25%.

The group, considered the largest private power generator in the country, expects to sign an agreement with the state government in the next four months.

Adani Group, which has been founded by Gautam Adani, intends to produce 1,000MW of power by 2017 in Odisha, reports Reuters.

The plant will reach full capacity by 2019, according to Rajesh Jha, who manages the company’s mining business in the state.

The facility will source coal from two blocks which the company is currently developing in the state with a total capacity of 70 million tonnes each year.

Reuters quoted Jha as saying, ""We expect to start coal mining in two years." The power plant would require 25 million tonnes of coal per year at full capacity.

The group presently has 9,240 MW of power generation capacity at its facilities in the states of Gujarat, Maharashtra and Rajasthan and imports about 100 million tonnes of coal every year, primarily from Indonesia to cater to these plants.

The group’s coal imports could double by 2020, Jha told the news agency.

Earlier this month, Adani Group acquired a power plant from Lanco Infratech for $327m.