The Uttar Pradesh cabinet has approved a long-term power purchase agreement (PPA) with Adani Power Ltd to secure 1,500 megawatts (MW) of electricity for the state’s grid.
The deal, signed with Uttar Pradesh Power Corporation Limited (UPPCL), will be effective for 25 years and is expected to strengthen the state’s thermal power portfolio as demand rises. Announcing the development, Uttar Pradesh Energy and Urban Development Minister A.K. Sharma said the 1,500 MW supply will come from a 2×800 MW (1,600 MW) thermal power project to be constructed in the Sonbhadra district. “This project was awarded through a competitive bidding process, where seven companies participated. Adani Power emerged as the lowest bidder, offering a tariff of ₹5.383 per unit (ex-bus),” Sharma stated at a press conference in Lucknow. The Sonbhadra project, which will be developed over the next six years, is part of a broader plan to add 10,795 MW of thermal capacity in the state by 2033–34. The energy requirement is being driven by industrial growth and urbanisation across Uttar Pradesh.
Sonbhadra district continues to be the epicentre of thermal and hydro power expansion in the state. It already houses major plants like the 3,000 MW Rihand Thermal Power Station and the 2,630 MW Anpara Thermal Power Station. Moreover, the district is expected to host eight of the ten pumped storage projects (PSPs) recently approved in principle by the state. In a related development, Adani Saur Urja Ltd—a subsidiary of Adani Green Energy—had in February signed a contract with UPPCL for 1,250 MW of pumped hydro storage capacity. The agreement, valid for 40 years from commercial operation, will provide storage support at an annual fixed cost of ₹76.5 lakh per MW. Meanwhile, other major power projects are under construction across Uttar Pradesh. The Ghatampur Thermal Power Station in Kanpur district (1,980 MW), a joint venture with Neyveli Lignite Corporation, and the Jawaharpur Super Thermal Power Station in Etah (1,320 MW), are among the key initiatives led by Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd (UPRVUNL). Obra C (1,320 MW) and Panki (660 MW) are also progressing in Sonbhadra and Kanpur respectively.
These efforts are projected to add over 4,000 MW of capacity by 2025, reinforcing the state’s push toward energy self-sufficiency and grid stability.
