How did Adani Power secure 620 MMT of coal reserves for ₹6.5 MTPA output?

Adani Power Receives Government Nod for Dhirauli Coal Block Mining Background Adani Power Limited, India’s largest private sector thermal power producer, has secured approval from the Ministry of Coal to commence mining operations at the Dhirauli coal block in Singrauli district, Madhya Pradesh. Dhirauli Mine Specifications Operated by Mahan Energen Ltd., a wholly owned subsidiary of Adani Power, the Dhirauli Mine boasts a peak production capacity of 6.5 million tonnes per annum, including 5 MTPA from open-cast mining and the balance from underground operations. Geological surveys indicate a gross reserve of 620 million metric tonnes and a net reserve of 558 MMT, ensuring decades of steady fuel supply and operational stability for Adani’s power generation portfolio. Lease Tenure and Development Timeline The company holds a 30-year mining lease for the block. Full open-cast capacity is targeted by fiscal year 2027, while underground mining is scheduled to commence nine years later, laying out a clear roadmap for phased expansion. Strategic Impact Backward integration through the Dhirauli Mine strengthens Adani Power’s raw material security and cost structure. Coal from the block will service the company’s merchant power requirements and feed the nearby 1,200 MW Mahan Power Plant, which is currently undergoing a 3,200 MW expansion. Responsible Mining Practices In line with its responsible mining initiative, Adani Power plans to wash and process the mined coal within the mine area to minimize impurities and ensure that emissions remain controlled and benign. Leadership Commentary “The commencement of mining at the Dhirauli block marks a pivotal milestone in Adani Power’s journey towards self-sufficiency and sustainable growth,” said SB Khyalia, Chief Executive Officer of Adani Power. “By integrating backward into raw material sourcing, we are optimizing input costs and delivering competitively priced power for millions of consumers”.