Ahmedabad: Adani Power has received approval from the Ministry of Coal to commence operations at the Dhirauli coal mine in Singrauli district, Madhya Pradesh. The move is expected to strengthen the company’s fuel security and support expansion of its nearby power generation assets.

The Dhirauli block, operated by Mahan Energen Ltd., a subsidiary of Adani Power, has been upgraded to a peak production capacity of 6.5 million tonnes per annum, with 5 MTPA from open-cast mining and the rest from underground operations. Geological assessments place the gross reserves at 620 million tonnes and net reserves at 558 million tonnes, ensuring long-term supply stability.

According to the company, mined coal may be washed and processed within the mining zone to reduce impurities and limit emissions beyond the site. “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.

He added, “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.”

This is the first captive coal block of Adani Power to receive government approval for operations. The mine’s open-cast peak rated capacity is targeted for FY27, while underground mining is scheduled to start nine years later. The block has been leased to the company for 30 years, providing operational continuity for decades.

Coal from the Dhirauli mine is expected to supply Adani Power’s merchant power needs and feed the 1,200 MW Mahan power plant nearby, which is currently undergoing a 3,200 MW expansion.

BI Bureau