Adani Power Ltd. has received approval from the Ministry of Coal to begin operations at the Dhirauli coal mine located in the Singrauli district of Madhya Pradesh, as per a recent announcement. The mine is owned by Mahan Energen Ltd, a subsidiary of Adani Power.
This is the company’s first captive coal block to receive government clearance for mining activities.
The Dhirauli mine has a peak production capacity of 6.5 million tonnes per annum (MTPA). Of this, 5 MTPA will be produced through open-cast mining by FY27, while the remainder will be sourced from underground mining, which is scheduled to begin nine years later.
According to geological reports, the mine block contains a gross geological reserve of 620 million metric tonnes (MMT) and a net reserve of 558 MMT. These reserves are expected to provide decades of raw material supply, ensuring steady operations and fuel security.
Adani Power holds a 30-year mining lease for the Dhirauli block. The Open Cast Peak Rated Capacity (PRC) is targeted for FY27. Underground mining operations will follow in the subsequent phase.
As per news reports, the company has indicated that coal may be washed and processed within the mining area. This step would ensure impurities and inert materials are not carried outside the site, keeping emissions restricted to the mine zone.
The coal produced is expected to meet Adani Power’s merchant power requirements. It will also supply the nearby 1,200 MW Mahan power plant, which is undergoing an expansion of 3,200 MW.
Adani Power is part of the Adani portfolio and is the largest private thermal power producer in India. The company operates 12 thermal power plants with an installed capacity of 18,110 MW across several states, along with a 40 MW solar plant in Gujarat.
Read more: What All Does the Adani Group Own?
As of September 3, 2025, 10:34 AM, Adani Power share price was trading at ₹608.20, a 0.02% decrease from the previous closing price.
The clearance for Dhirauli mine operations provides Adani Power with long-term resource security and aligns with its upcoming expansion plans in the power sector.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Sep 3, 2025, 10:45 AM IST
Team Angel One
We're Live on WhatsApp! Join our channel for market insights & updates