Adani Power Gets Government Nod to Commence Dhirauli Coal Mine Operations in Madhya Pradesh
Government Clearance Strengthens Adani Power’s Fuel Security and Supports Expansion of High-Capacity Power Projects
Adani Power has secured formal approval from India’s Ministry of Coal to begin mining operations at the Dhirauli coal block in Singrauli district, Madhya Pradesh, a major milestone in the company’s plan to strengthen its fuel security.
Operated by Mahan Energen Ltd., a wholly owned subsidiary of Adani Power, the Dhirauli mine is expected to produce up to 6.5 million tonnes of coal annually. The site holds significant geological reserves, with 620 million metric tonnes (MMT) in gross reserves and 558 MMT in net reserves, ensuring a steady supply of coal over the long term. Mining will be carried out through a combination of open-cast and underground methods, with the open-cast segment contributing approximately 5 MTPA.
This new captive coal source is set to support Adani Power’s merchant power generation and the planned expansion of the 1,200 MW Mahan Power plant to a total capacity of 3,200 MW. The company is committed to responsible mining practices, including coal washing and processing within the mine area to reduce environmental impact and emissions.
SB Khyalia, CEO of Adani Power, described the government approval as a "pivotal milestone," highlighting how backward integration into coal mining will help optimize input costs and enable the company to offer competitively priced power. The Dhirauli coal block stands as Adani Power’s first captive mine to receive official clearance to commence operations, marking a key step in the company’s growth trajectory.