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Madhya Pradesh has formalized agreements with three private firms Torrent Power, Adani Power, and Hindustan Power projects to set up new power plants with a combined capacity of 4,000 MW and investments totaling INR 60,000 crore. The projects, located in Anuppur district and developed under the DBFOO model, aim to meet the state's electricity demand entirely and create around 8,000 jobs. CM Mohan Yadav emphasised that these agreements reinforce Madhya Pradesh's sustainable development goals and its position as a preferred destination for investors.
The Madhya Pradesh government recently signed agreements with three private power companies to generate and supply 4,000 MW of electricity in the state, involving a total investment of INR 60,000 crore. The agreements were exchanged between Vishesh Gadpale, Managing Director of Madhya Pradesh Power Management Company, and representatives of Torrent Power Ltd, Adani Power Ltd, and Hindustan Powerprojects Pvt Ltd. Advertisement
The pacts were inked at the Chief Minister's residence, Samatva Bhavan in Bhopal, in the presence of CM Mohan Yadav. He highlighted that the agreements will strengthen the foundation for sustainable development in Madhya Pradesh and enhance overall power availability to fully meet the state's electricity demand.
These upcoming power plants, planned under a design, build, finance, own, and operate (DBFOO) model, are expected to provide direct and indirect employment to around 8,000 people. The projects will be situated in Anuppur district, contributing to the region's industrial growth.
CM Yadav pointed out that the state's investor-friendly policies, strong infrastructure, and effective governance are making Madhya Pradesh an attractive destination for both domestic and international investors.
The Madhya Pradesh Power Management Company had earlier invited bids for 3,200 MW of power from new plants through a tariff-based competitive bidding process under the DBFOO scheme, with an option to purchase an additional 800 MW through a greenshoe mechanism. Following the bidding process, Torrent Power was allocated 1,600 MW, while Adani Power and Hindustan Power projects received 800 MW each. The additional 800 MW under the greenshoe option brings the total capacity to 4,000 MW.
Investment commitments are substantial, with Torrent Power and Adani Power each planning to invest INR 24,000 crore, and Hindustan Powerprojects allocating INR 12,000 crore for their respective plants. Power supply contracts have been signed with special purpose vehicles formed by the selected developers, and electricity generation from these projects is expected to begin in 2030.
Source PTI
FAQ
Q1. What recent agreements has Madhya Pradesh signed in the power sector?
The Madhya Pradesh government has signed agreements with three private power companies—Torrent Power Ltd, Adani Power Ltd, and Hindustan Powerprojects Pvt Ltd—to develop new power plants with a combined capacity of 4,000 MW. These agreements involve a total investment of INR 60,000 crore and were formalized at the Chief Minister’s residence, Samatva Bhavan in Bhopal, in the presence of CM Mohan Yadav.
Q2. What is the purpose of these projects and where will they be located?
The upcoming plants are designed to fully meet Madhya Pradesh’s electricity demand and support the state’s sustainable development goals. The projects will be located in Anuppur district, a region earmarked for industrial and energy infrastructure growth, and are expected to create around 8,000 direct and indirect jobs.
Q3. Under which model will these power plants be developed?
The projects will be implemented under the Design, Build, Finance, Own, and Operate (DBFOO) model. This approach allows private firms to manage the full lifecycle of the power plants—from design and construction to financing, operation, and ownership—ensuring efficiency and accountability in project execution.
Q4. How was the capacity allocation decided among the three firms?
The Madhya Pradesh Power Management Company had earlier conducted a tariff-based competitive bidding process for 3,200 MW, with an option to purchase an additional 800 MW through a greenshoe mechanism. Following the process, Torrent Power was allocated 1,600 MW, while Adani Power and Hindustan Powerprojects were allocated 800 MW each. The additional 800 MW under the greenshoe option brings the total capacity to 4,000 MW.
Q5. What are the investment commitments of each company?
Torrent Power and Adani Power plan to invest INR 24,000 crore each for their respective plants, while Hindustan Powerprojects will invest INR 12,000 crore. These investments include capital expenditure for plant construction, technology adoption, and operational infrastructure.
Q6. When is electricity generation from these projects expected to begin?
Power generation from the three plants is expected to commence by 2030. Contracts for electricity supply have been signed with special purpose vehicles (SPVs) formed by the respective developers to ensure dedicated and reliable delivery to Madhya Pradesh’s grid.
Q7. What significance do these projects have for Madhya Pradesh?
CM Mohan Yadav highlighted that these agreements reinforce the state’s position as a preferred destination for investors by combining strong infrastructure, investor-friendly policies, and effective governance. The projects will enhance power availability, support industrial growth in Anuppur district, generate employment, and contribute to the state’s sustainable development objectives.
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