Adanis to expand power trade

The city-based Adani Exports Ltd (AEL), a part of the Rs 4,500 crore multi-diversified Adani Group, which kicked off its power trading business during the third week of November, is now planning to expand its operations to the neighbouring states which are facing severe power crisis.

The company started operations in November after securing a temporary licence from the Central Electricity Regulatory Commission (CERC).

AEL, the Rs 3,000 crore company listed with the Bombay Stock Exchange, had earlier signed a memorandum of understanding (MoU) with the Sikkim government for buying power from this power-surplus state.

The company is now in talks with the Calcutta Electric Supply Corporation (CESC), another power-surplus utility.

"We signed an MoU with the Sikkim government for buying power from them around three months back. After the new Electricity Act, 2003, opened up the power sector for private players, we signed a sales agreement with the Maharashtra State Electricity Board (MSEB) during the first week of November for supplying 50 MW of electricity which is the first business deal of the Adanis in the power trading sector. We have started selling power from November 24, the first day when power from Sikkim started flowing through the network of the Power Grid Corporation and the National Thermal Power Corporation (NTPC). We are looking at expanding our network in other states also," a senior company official said on Monday.

AEL has decided to sell power to the state electricity board (SEBs) which are connected with the grid lines of NTPC or Power Grid, the official said.

The company is now looking for opportunities in Madhya Pradesh and Chattisgarh.

"After Maharashtra, we are now looking for similar opportunities in Madhya Pradesh and discussions are in the initial stage.

"We are also looking for alternative power sellers as after some time Sikkim government will not be in a position to consistently supply power to us."

"We are trying to start negotiations with CESC in Kolkata which has surplus power and has proved to be a consistent power supplier," the official said.

R K Madan, head, power trading, Adani Group, said, "We are looking for opportunities in other states as well and discussions are going on in this direction. We are also trying to open talks with the power generating and distribution companies who have surplus power but at this stage, we will not be able to divulge further details."

Madan, the former chairman of the Power Trading Corporation, was hired by the Adanis to head its power trading operations and he is headquartered in Delhi.

On Monday, Madan was in Kolkata and it is learnt that he held a meeting with CESC officials.

The group, which is already into the gas sector and recently awarded licences for compressed natural gas (CNG) and piped natural gas (PNG) distribution rights in Ahmedabad and Vadodara cities, is now strengthening its manpower base in the power trading segment also.