14 October 2026 – Adani Power Limited has received a Letter of Award (LoA) from Uttarakhand Power Corporation Limited (UPCL) to supply 1,234 MW of ex-bus net thermal power under a long-term Power Supply Agreement (PSA). The proposed arrangement involves an installed capacity of 1,320 MW and remains subject to regulatory approval for tariff adoption.
The LoA was received on October 13, 2026, after Adani Power emerged as the successful bidder in UPCL’s power procurement tender. The agreement is expected to support Uttarakhand’s long-term electricity requirements by securing a dedicated supply of coal-based power.
The award is subject to approval from the Uttarakhand Electricity Regulatory Commission (UERC) for the adoption of the tariff under Section 63 of the Electricity Act, 2003.
Uttarakhand Approves 25-Year Power Supply Agreement
The development follows the Uttarakhand Cabinet’s approval in August 2026 for a 25-year agreement between UPCL and Adani Power for the procurement of coal-based electricity.
Adani Power emerged as the lowest bidder, with a composite tariff of ₹5.746 per unit for a contracted capacity of 1,234 MW, corresponding to an installed capacity of 1,320 MW.
The long-term arrangement is intended to help UPCL secure electricity supplies to meet the state’s anticipated demand. Long-duration power procurement agreements can provide greater visibility over future supply arrangements while helping distribution utilities plan their power portfolios.
Following the Cabinet’s approval, UPCL was authorised to execute the Power Supply Agreement and associated documents, fulfil contractual requirements and obtain the necessary statutory approvals from the state electricity regulator.
Proposed Thermal Power Project in Chhattisgarh
Under the arrangement, Adani Power will establish the power project in Chhattisgarh, where a coal block has already been allocated.
The project is intended to supply electricity to Uttarakhand under the proposed long-term agreement. Locating the project in Chhattisgarh adds another inter-state dimension to the arrangement, with electricity generated in one state intended to meet demand in another.
The development also highlights the role of long-term thermal power procurement in India’s electricity market, where state distribution companies continue to balance growing electricity demand with the availability, affordability and reliability of supply.
Regulatory Approval Remains a Key Milestone
Although the Letter of Award marks a significant step in the procurement process, the proposed agreement remains subject to the adoption of the tariff by the Uttarakhand Electricity Regulatory Commission under Section 63 of the Electricity Act, 2003.
The regulatory process is an important milestone before the arrangement can progress in accordance with the applicable requirements and contractual conditions.
The approved composite tariff of ₹5.746 per unit will be a key consideration for UPCL as it evaluates the long-term financial implications of the power purchase arrangement.
What the Deal Means for Uttarakhand’s Power Supply
The proposed 25-year agreement could provide Uttarakhand with a long-term source of thermal electricity as the state plans for future consumption across residential, commercial and industrial sectors.
For power distribution companies, long-term procurement arrangements can help improve supply planning and provide greater visibility into contracted electricity availability. However, the overall impact will also depend on regulatory approvals, project development, transmission arrangements and the eventual commencement of supply.
For Adani Power, the Letter of Award represents a further opportunity to expand its role in India’s thermal power market through long-term supply arrangements with state utilities.
As India’s electricity demand continues to evolve, the agreement underscores the continuing importance of dependable generation capacity alongside investments in renewable energy, storage and transmission infrastructure.
The next key milestone is regulatory approval of the tariff by the Uttarakhand Electricity Regulatory Commission, followed by progress on the project and the contractual requirements for supply commencement.
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