Adani Group revises plans for power foray

AHMEDABAD: The Adani Group has decided to change its plans for power sector foray. Adani Power, which was planning to set up power generating capacity of 9,900 mw, has now scaled down its capacity to 6,600 mw.

Instead of raising Rs 5,630 crore as per the original plan last year, the diversified conglomerate is now seeking to raise only Rs 2,000 crore for Adani Power through an initial public offering. Its revised investment estimates to commission 6,600 mw capacity is Rs 28,369 crore against Rs 43,139 crore for 9,900 mw capacity.

Adani Power filed revised draft red herring prospectus (DRHP) on April 20. It was learnt that the group would go ahead with 3,300 mw project only after inking new long-term supply agreements with its customers. A proposed 6,600-mw capacity would come up at Mundra in Gujarat and Tiroda in Maharashtra. However, the time frame for commissioning 1,320 mw facility at Kawai and 1,980 mw plant at Dahej is not yet decided.

The first phase of 660 mw unit of 1,980 mw Dahej power project is scheduled to commence operations from November 2011, while the first phase of 660 mw unit of 1,320 mw Kawai project is expected to start production from October 2011.

Adani Group has already tied up with state electricity board for 4,744 mw, while it will utilise close to 1,850 mw power generation capacity for trading purpose. The group's Mundra SEZ also will consume substantial power.

The group is maintaining that the projects are on track and Adani Power will now execute the projects in phases. ���We
are not shelving any plans. We have decided to go ahead in phases for commissioning projects,��� said Adani Enterprise CFO Ameet Desai, who is the key person for corporate finance at Adani Group.