Why has Adani’s 1.6GW Mahan thermal plant been pushed to FY28?

The West Asia conflict has taken a toll on the Adani Power 1.6 GW Mahan thermal power project commissioning this fiscal. The two units (2X800MW) at Singrauli, Madhya Pradesh, are now expected to commission in FY28 as the schedule is impacted by the availability of labour and LPG.

Adani Power CEO, S B Khyalia said the Mahan Phase-II project in Madhya Pradesh is 86% complete, and the plan was that the first unit would get commissioned in the last quarter of this year, but if the geopolitical situation continues for a longer time, then at the most, it can go to the first quarter of the next year.

“We thought we should be in a position to commission both units this year. We are still hopeful, but because of this ongoing geopolitical situation, which is slightly impacting the availability of labour and the availability of LPG, we are taking a conservative approach,” Khyalia said during the Q4FY26 earnings call last month.

There are several other industrial sectors getting impacted due to the ongoing conflict. During the initial phase of war, a shortage of labour was faced across the country as many went back to their hometowns.   

What is Adani Power’s revised target?

The company’s earlier target was adding 2.9GW in FY27, 2.4 GW each in FY28 and FY 29. However, now it stands revised with 1.32 GW in FY27 and 1.6 GW in FY28

Khyalia said that because of this geopolitical issue, the company is taking a conservative approach.

“The issue of availability of workforce, there are issues of availability of certain critical resources like LPG. So therefore, we are moving this 1.6 gigawatt of Mahan to the next year. But we are still trying that it should get, the first unit should get commissioned in the current year. And therefore, on a conservative side, we have considered this year 1.3-gigawatt, next year, 1.6 gigawatt,” he said.

What is the project?

Mahan Energen Limited (MEL), a subsidiary of Adani Power Limited (APL) is expanding its existing 1200 MW (2x600 MW) power plant at Singrauli, Madhya Pradesh by addition of 1600 MW (2X800 MW) under Phase-II.

The expansion units are based on Ultra-supercritical technology. The power generated by the Phase-II plant will be supplied under a long term PPA for 1230 MW (Net) to Madhya Pradesh Power Management Company Ltd.