Adani Power gets govt nod to begin coal mining at MP's Dhirauli Mine

Adani Power Ltd on Tuesday said it has secured approval from the Ministry of Coal to start mining operations at the Dhirauli block in Singrauli district of Madhya Pradesh. The company described the clearance as a crucial step toward fuel security and operational stability.

The Dhirauli Mine, owned by Mahan Energen Ltd., a wholly owned subsidiary of Adani Power, carries a peak rated capacity of 6.5 million tonnes per annum — with 5 MTPA from open cast and the rest from underground mining. Geological studies show reserves of 620 million metric tonnes in gross terms and 558 MMT net, ensuring decades of supply.

"This is 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 not only optimizing input costs but also enabling ourselves to deliver competitively priced power for millions of consumers. Our commitment remains unwavering in developing the mine responsibly, with a focus on long-term value creation for all stakeholders."

The company said that coal may be washed and processed within the mining area to prevent impurities and inert material from leaving the site. This, it claimed, will ensure "emissions are benign" as part of its responsible mining initiative.

The Dhirauli block is the company's first captive mine to receive government clearance for operations. Adani Power holds a 30-year lease on the block. Its open cast peak rated capacity is targeted for FY27, while underground production is scheduled to begin nine years later.

The mined coal is expected to supply Adani Power's merchant power requirements and feed the 1,200 MW Mahan Power plant, which is undergoing an expansion to 3,200 MW.

Adani Power, part of the Adani portfolio, is the country's largest private thermal power producer, with 18,110 MW of installed thermal capacity spread across twelve plants in Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Madhya Pradesh, Jharkhand, and Tamil Nadu, along with a 40 MW solar plant in Gujarat.