Adani Becomes India's No 1 Independent Power Generator but Slows Pace of Additions due to Sector Concerns

Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--After commissioning the fourth 660-megawatt (MW) unit at its Tiroda power project on Maharashtra, India's Adani Power (AP) (NSE:ADANIPOWE.NS) (Ahmedabad, India) displaced Tata Power (TP)(NSE:TATAPOWER.NS) (Mumbai, India) as the country's largest independent power producer. It now has 8,620 MW of installed generation capacity, topping Tata Power's 8,560 MW.

But now, AP plans to slow that rate of adding power to its fleet as it is faced with uncertainties concerning fuel supply, the weak financial health of state distributors and delays in the environmental approval for new projects.

In the last financial year, AP added 2,640 MW, which represented about 15% of the overall capacity addition of about 17,000 MW in India.

Currently, TP has 1,000 MW in an advanced stage of commissioning and has under consideration 849.2 MW of wind, solar, hydro, and gas-based projects in India and overseas.

AP Chief Executive Vineet Jaain said that the company would add only one more 660-MW unit at Tiroda, to close the fiscal year with a capacity of 9,280 MW. Instead of capacity addition, and in view of the ongoing concerns in the sector, the company would focus on consolidating its position.

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