Maharashtra awards 6,600 MW power contract to Adani Group amid opposition outcry

The Adani Group has secured a long-term contract to supply 6,600 MW of bundled renewable and thermal power to Maharashtra, outbidding rivals such as JSW Energy and Torrent Power with a competitive tariff of Rs 4.08 per unit. This rate, nearly a rupee lower than Maharashtra's current average electricity procurement cost, is expected to meet the state’s future power needs at a reduced cost.

The Maharashtra State Electricity Distribution Company (MSEDCL) awarded the contract following a tender that combined 5,000 MW of solar energy and 1,600 MW of thermal power. Adani's bid, which included 1,496 MW from its new ultra-supercritical thermal capacity and 5,000 MW solar energy from its Khavda renewable park in Gujarat, emerged victorious over competitors. The company is set to begin power supplies within 48 months.

However, the deal has drawn sharp criticism from the opposition. Senior Congress leader Jairam Ramesh lashed out at the ruling Mahayuti alliance, accusing the government of fast-tracking the agreement in its final days before an anticipated "landslide defeat" in the upcoming Maharashtra assembly elections.

In a scathing post on X, Ramesh dubbed the deal “yet another Modani enterprise,” a jibe referencing prime minister Narendra Modi’s perceived closeness to billionaire Gautam Adani, and hinted at “shocking details” about the alleged rigging of the deal.

Despite the backlash, the Adani Group has confirmed the deal, stating that it will sign long-term agreements with MSEDCL for both renewable and thermal power.

The group’s 25-year contract is expected to deliver power at Rs 4.08 per unit, significantly lower than Maharashtra’s 2023 average procurement cost of Rs 4.70 per unit.

The tender, floated just before the Lok Sabha election model code of conduct kicked in and allotted just before the assembly polls, is being justified as a move to meet peak energy demand during non-solar hours, ensuring Maharashtra’s electricity needs are met year-round.