The Union government has approved a key regulatory change that will allow Adani Power’s 1,600 MW Godda thermal plant in Jharkhand, originally set up solely to supply electricity to Bangladesh, to now connect to India’s national power grid.
This marks a significant shift in the project’s mandate and unlocks the potential for Adani Power to supply electricity to Indian distribution companies (discoms), opening up a new domestic revenue stream.
The Ministry of Power issued the approval via a notification dated September 29, allowing the plant to link up with the 400 kV Kahalgaon–Maithon transmission line through a “line-in-line-out” (LILO) arrangement. The route will pass through 56 villages in the Godda and Poreyahat tehsils of Jharkhand.
Until now, the Godda plant operated under a Special Economic Zone (SEZ) structure with a binding power purchase agreement to export electricity exclusively to Bangladesh. The new move involved regulatory adjustments to accommodate cross-border electricity export rules, SEZ guidelines, and domestic transmission access.
To facilitate the grid connection, Adani Power has also been granted rights under the Indian Telegraph Act, enabling the company to lay transmission infrastructure across land parcels along the approved route.
The development was met with a positive response from investors, with Adani Power shares rising around 7% to hit a day’s high of ₹168 on the NSE on Friday, following the announcement.
Analysts see the approval as a long-term boost to the company’s operational flexibility and earnings potential. However, the project still faces ground-level challenges, including securing local clearances and managing the concerns of affected villages along the transmission line route.
The regulatory green light marks a new chapter for Adani Power and a notable shift in India’s energy policy landscape, although questions remain about when domestic supply will begin and whether it will take precedence over existing power exports to Bangladesh.
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