New Delhi: Adani Group has “secured” all long-term coal power purchase contracts awarded by BJP-ruled states, either independently or as one among multiple awardees, since the Centre resumed such agreements in 2024, according to a report by The Reporters’ Collective.
The report said that of the 12 long-term power purchase contracts bid out between March 2024 and January 2026, the Adani Group “won all eight tenders floated by BJP-ruled states, either independently or as one among multiple awardees”. Of the remaining four tenders issued by Opposition-ruled states, the group reportedly secured one contract. In West Bengal, then governed by the Trinamool Congress, the company backed out of the bidding process despite being found eligible, the report said.
The report noted that correlation does not necessarily imply causation. However, it cited its earlier reporting that some BJP-ruled states had allegedly “modified tender conditions in ways that advantaged the Adani Group”.
The report stated that these contracts could generate more than Rs 13.27 lakh crore in revenue over the next 25 years. According to the report, the estimated revenue of Rs 13.27 lakh crore is based on the tariffs discovered through bidding and the duration of the contracts.
According to the report, the cost estimates are based on the assumption that the power plants operate at three-fourths of their capacity throughout the year. The yearly cost of each power purchase agreement was calculated by multiplying the expected annual electricity generation by the tariff discovered after bidding. While the contracts require the government to increase the revenue to cover for inflation over the lifetime of the projects. We have not factored that into the calculations, so the revenue estimates are conservative and have also not been discounted for the time spread. To estimate the total cost over the life of the contracts, the analysis assumes that the cost of electricity remains unchanged for the full 25-year duration of the agreements, without accounting for any future increases in fuel, transportation, or other costs.
The report further stated that these agreements require states to purchase coal-based electricity from private producers over long periods, often exceeding two decades. Some contracts also mandate the supply of renewable energy alongside thermal power. Such arrangements provide private companies with assured revenue over the life of the projects.
The Adani Group rejected suggestions that political considerations influenced the award of contracts. In response to queries by The Reporters’ Collective, Adani Power said the power purchase agreements were secured through competitive bidding and that tariffs were approved by the respective electricity regulators after ensuring transparency and competitiveness.
“Where Adani Power has participated, it has done so through open, transparent and competitive bidding processes and the political affiliation of any state government has no bearing on Adani Power’s participation in statutory procurement processes,” the company said.
The company also said it was “not the sole winner in all BJP-ruled states and had secured contracts in non-BJP states as well.”
The report said long-term thermal power contracts had declined significantly during much of Prime Minister Narendra Modi’s first and second terms, amid concerns over slower-than-expected economic growth, India’s climate commitments and the rapid expansion of renewable energy.
However, the trend reversed in 2024 as policymakers sought to ensure reliable electricity supply amid rising demand. Industry experts cited the intermittent nature of renewable energy and concerns over energy security as key reasons behind the renewed focus on coal-based power generation, the report said.
In August 2024, the Centre announced plans to add 80 gigawatts (GW) of thermal power capacity by 2031-32, representing a 36.8 per cent increase over the country’s thermal power capacity in 2024, according to the report.
The Maharashtra government was reportedly among the first states to issue a tender combining thermal and solar power procurement from a single entity, the report said.
According to The Reporters’ Collective, some companies objected to the tender, arguing that it favoured firms capable of supplying both large-scale thermal and renewable energy. The Adani Group won the contract.
The publication had previously reported that the Maharashtra tender, along with a similar tender later issued by the BJP-ruled Rajasthan government, was structured in a manner that allegedly “advantaged the Adani Group”. The Rajasthan tender was subsequently scrapped.
The report also highlighted instances where state governments extended concessions to support thermal power projects. In Assam, the state government reportedly committed funds to purchase surplus electricity from a proposed 3,200-MW Adani thermal power plant. In Bihar, the company was allotted about 1,000 acres of land for a thermal power project at a nominal lease rate of Re 1 per year, the report read.
In Madhya Pradesh, Adani Power emerged as one of the successful bidders in a tender for 4,100 MW of thermal power. The company later “secured an additional 800 MW through a first-of-its-kind greenshoe option, which allowed the state utility to procure extra power from an existing winning bidder without conducting a fresh auction”, according to the report.
The report said that the additional capacity was first offered to Hindustan Thermal Projects and then to Torrent Power, both of which declined. The offer was subsequently accepted by Adani Power Sept. 8, 2025.
The Adani Group also secured a 2,500-MW round-the-clock power supply contract in Maharashtra that requires 51 per cent of the electricity to come from traceable green energy sources.
According to the report, the revenue estimates assume power plants operate at 75 per cent capacity throughout the year. The calculations do not account for future increases in tariffs, fuel costs, transportation costs or inflation-linked revisions, and do not discount future revenue streams, making the estimates conservative.
With the Centre targeting a major expansion of coal-fired power generation, the report said the thermal power sector is likely to remain a key area of growth. In investor communications cited by the publication, the Adani Group described the government’s thermal power expansion plans as a significant business opportunity for financially strong and experienced private-sector players and noted that the target for additional thermal capacity could rise from 80 GW to 95 GW.
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