Adani Power's ₹2 Lakh Crore Plan to Double Capacity by 2032

Introduction to Adani Power's Growth Strategy

Adani Power Limited (APL) has announced a significant expansion strategy, committing a record ₹2 lakh crore to new projects aimed at meeting India's escalating electricity needs. The company is sharpening its growth ambitions by expanding its power generation capacity and securing major tenders across several states. This strategic push is designed to more than double its current capacity, positioning APL as a pivotal player in the country's energy sector for the next decade. The plan involves a combination of greenfield and brownfield projects, supported by a robust framework for fuel security and the adoption of advanced, efficient technologies.

Responding to India's Surging Power Demand

India is currently experiencing one of the most significant surges in power demand in its history, fueled by rapid urbanization, expanding industrial capacity, and rising disposable incomes. According to Adani Power's projections, the nation's peak power requirement is set to increase from 250 gigawatts (GW) to 400 GW by 2032, and is expected to exceed 700 GW by 2047. While renewable energy sources are growing, thermal power remains the backbone of the national grid, providing the stable, baseload power necessary for grid stability and reliability. APL's expansion is a direct response to this demand, ensuring a consistent energy supply to support India's economic growth.

The ₹2 Lakh Crore Expansion Blueprint

To address the country's energy needs, APL has revised its long-term power production target upwards. The company now aims to achieve a total capacity of 41.87 GW by 2032, a substantial increase from its previous goal of around 30 GW and its current capacity of 18.15 GW. The cornerstone of this plan is India's largest private-sector thermal power project, backed by a total investment of ₹2 lakh crore. The company has already secured the necessary land and placed orders for the main equipment, signaling its readiness to execute this ambitious vision. This expansion will transform APL from a stressed thermal power producer into one of India's most efficient private baseload power generators.

Securing Key State-Level Projects

During 2025, Adani Power achieved several key milestones, including securing major tenders to supply power to states like Uttar Pradesh, Bihar, Madhya Pradesh, and Assam. The company has dominated recent procurement cycles, winning approximately 70% of the awarded capacity in state tenders, which amounts to 12.4 GW out of a total of 17.7 GW. These wins include more greenfield projects than any other private competitor, underscoring APL's competitive edge. Major investments include a 1,500 MW plant in Mirzapur, Uttar Pradesh ($1 billion), a large facility in Bhagalpur, Bihar ($1 billion), a 1,600 MW project in Anuppur, Madhya Pradesh (₹21,000 crore), and a 3,200 MW project in Assam (₹48,000 crore).

Brokerage Outlook and Financial Projections

Reflecting confidence in this growth trajectory, Antique Stock Broking has initiated coverage on Adani Power with a 'Buy' rating and a target price of ₹187 per share, suggesting a potential upside of 30%. The brokerage highlights the company's strong earnings visibility, with nearly 90% of its operational capacity tied up in long-term Power Purchase Agreements (PPAs). Antique projects that APL's consolidated revenue, EBITDA, and Profit After Tax (PAT) will grow at compound annual growth rates of 16%, 19%, and 17%, respectively, between FY25 and FY32. This financial strength is expected to support the massive capital expenditure, with nearly 60% of the ₹2 trillion pipeline funded through internal accruals.

Fuel Security and Strategic Diversification

To support its expanded thermal capacity, Adani Power has secured its fuel supply chain. The company received approval to commence operations at a coal mine in Madhya Pradesh, which has an annual production capacity of 6.5 million tonnes. This captive coal source is crucial for maintaining steady and reliable operations for its power plants. In addition to strengthening its core thermal business, APL has also diversified into the hydropower sector. A partnership in Bhutan has resulted in a 570 MW hydroelectric project, adding a renewable and stable energy source to its portfolio.

Economic Impact and Job Creation

The company's expansion is set to have a significant positive impact on local economies. The projects currently under implementation are estimated to create employment for over 1 lakh people during the construction phase. Once operational, these plants are expected to provide sustained employment for 7,000 to 10,000 individuals. Furthermore, Adani Power is focusing on skill development programs for local youth and initiatives to encourage more women to enter engineering roles, contributing to broader socio-economic development in the regions where it operates.

Conclusion and Forward Look

Adani Power's aggressive expansion plan, backed by a ₹2 lakh crore investment, firmly positions the company to capitalize on India's long-term energy demand. With a clear roadmap to reach nearly 42 GW in capacity, secured long-term contracts, and a strong financial outlook, APL is set for a period of sustained growth. For 2026, the company plans to accelerate the construction of its new plants and increase the use of digital tools to enhance operational reliability and efficiency, further solidifying its role as a leader in India's power sector.