Adani Power receives approval to commence Dhirauli Mine operations; shares up over 1%

This significant development will provide Adani Power with enhanced raw material security, reinforcing its leadership position in the sector, the company said in its press release.

The Dhirauli Mine, owned by Mahan Energen Ltd., a subsidiary of Adani Power, boasts a peak production capacity of 6.5 MTPA, including 5 MTPA from open-cast mining and the remainder from underground operations.

According to the geological report, the block has a gross geological reserve of 620 MMT and a net geological reserve of 558 MMT, ensuring decades of supply, fuel security, and operational stability.

As part of the responsible mining initiative, 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, Adani Power said in its press release.

What CEO said 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.”

"This is Adani Power’s first captive mine to have received government approval to commence mining operations. The mine’s Open Cast Peak Rated Capacity (PRC) is targeted for FY27, with underground mining scheduled to commence nine years later," the company said in its press release.

Adani Power holds a 30-year mining lease for the block, ensuring long-term operational continuity.

The Dhirauli block is expected to fulfil Adani Power’s merchant power requirements and also supply to the nearby 1,200 MW Mahan Power plant, which is currently undergoing an ambitious 3,200 MW expansion, it added.

About Adani Power

Adani Power (APL), a part of the Adani portfolio, is the largest private thermal power producer in India. The company has an installed thermal power capacity of 18,110 MW spread across twelve power plants in Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Madhya Pradesh, Jharkhand, and Tamil Nadu, apart from a 40 MW solar power plant in Gujarat.