According to sources, Adani Power will set up a 2,500 MW thermal power plant in Odisha from "coal reject", or residues after washing the fuel, from its two mines in the state.
This plant is also part of Adani Group's plan to have a power generation capacity of 20,000 MW by 2020 and will be funded through a debt equity ratio of 70:30.
The proposed Rs 12,500 crore plant will be set up by a subsidiary of Adani Power, sources said.
"The proposal to set up the plant is at a very nascent stage as the work will only begin after the two mines start production, which will take another couple of years," sources added.
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When contacted, Adani Power declined comment.
Adani Group is the Mine Developer-cum-Operator (MDO) by MahaGuj Collieries, a joint venture company of Maharashtra State Power Generations Corp and Gujarat State Electricity Corp for development and operation of Machhakata coal block in Odisha with production capacity of 30 million tonnes per annum.
Sources said that the residual washed coal supplied by Adani Group to the power plants being operated by the state discoms will be utilised by the company for its proposed 2,500 MW capacity plant in the state.
The rejected coal cannot be transported beyond 500 kilometres from the mines. Therefore, it has to be consumed within this distance.
Earlier this month, Adani Power said it would acquire Lanco Infratech's 1,200 MW imported coal-fired Udupi thermal power plant in Karnataka.