Adani Power Share Price in Focus After Uttar Pradesh Regulator Delays ₹2 Billion Project Over Cost Concerns

As per Reuters, the Uttar Pradesh electricity regulator has paused the clearance of Adani Power’s US$2 billion coal power project due to uncertainties surrounding cost components and potential savings, following relaxed pollution control rules. 

Adani Power’s US$2 billion Deal Hits Regulatory Roadblock 

Adani Power secured a contract in May to supply 1,500 MW of electricity to Uttar Pradesh at ₹5.38 per unit. However, the Uttar Pradesh Electricity Regulatory Commission has withheld approval for the power purchase agreement. The delay stems from the lack of clarity around the project’s revised costs, especially after the Central government eased norms regarding sulphur-dioxide emission control equipment in July, potentially offering large-scale cost savings. 

The commission has asked the Uttar Pradesh Power Corporation to reassess the financial implications of not having to install the now-exempt pollution control systems. The savings were expected to be passed to consumers, but officials had not updated the agreement’s fixed and operational charges accordingly. 

Regulator Demands Revised Cost and Tax Assessment 

Besides project cost recalculation, the regulator flagged that the state utility had overlooked the impact of revised goods and services tax (GST) rates on coal, which also influences the final tariff. During a hearing in September, the commission noted that the state power firm should have promptly updated the proposal after the confirmation on equipment exemption to reflect accurate financial data. 

The commission has further instructed the state utility to formally include Adani Power in the case and submit a detailed financial breakdown within 2 weeks. The next hearing is scheduled for December 18, 2025. 

Read More: Adani Power Share Price Surge; Wins 3,200 MW Thermal Project from Assam Power Distribution Company! 

Adani Power Share Price Performance  

As of November 20, 2025, at 9:20 AM, Adani Power share price was trading ₹153.21 up by 1.06% from the previous closing price. 

Conclusion 

The Uttar Pradesh power regulator’s decision to delay the Adani Power contract highlights the importance of transparent cost analysis and regulatory compliance. With billions at stake, accurate financial reporting is essential to safeguard consumer interests and ensure fair energy pricing. 

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