Coal Ministry gives nod to Adani Power to begin mining at Dhirauli in Madhya Pradesh

Thermal power producer Adani Power on Tuesday, September 2, announced that it received approval from the coal ministry to commence mining operations at Dhirauli mine in Madhya Pradesh.

This significant development will provide the company with enhanced raw material security, reinforcing its leadership position in the sector, it said in a regulatory filing.

Located in the Singrauli district, the mine, owned by Adani Power’s subsidiary, Mahan Energen Ltd, has a peak production capacity of 6.5 MTPA, including 5 MTPA from open-cast mining, which is expected to be achieved by FY27, and the remainder from underground operations, which are set to commence nine years later.

The firm holds a 30-year mining lease for the block, which is also its first captive mine to have received government approval to commence mining operations.

Besides commencing the operations, Adani Power may also wash and process the mined coal within the mining area itself, so that impurities and inert materials are not carried beyond the mine area, and thereby the emissions are benign, it added.

It is expected to fulfill the Gujarat-headquartered company’s merchant power requirements and supply coal to the nearby 1,200 MW Mahan power plant, which is undergoing a 3,200 MW expansion.

According to a geological report, the mining block has a gross geological reserve of 620 million metric tonnes (MMT) and a net geological reserve of 558 MMT, which will ensure decades of supply, fuel security, and operational stability.

Commenting on the development, SB Khyalia, Chief Executive Officer of Adani Power, said: “The commencement of mining at the Dhirauli block marks a pivotal milestone in Adani Power’s journey towards self-sufficiency and sustainable growth.”

"By integrating backward into raw material sourcing, we are not only optimising 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," Khyalia added.

Adani Power share performance

Shares of Adani Power closed 0.02% higher at ₹606.95 apiece on the National Stock Exchange (NSE) on Tuesday. However, the announcement was made after the market closed.

Over the month, the scrip surged 3.46% and soared 11.13% over the month. On a year-to-date basis, it advanced 14.57%.

The thermal production company has a total market capitalisation of ₹2.34 lakh crore, as of September 2, 2025, according to NSE.

While the stock hit a year’s low of ₹432 on November 21, 2024, it reached a 52-week high of ₹684.45 per equity share a year ago on September 2, 2024.