Ahmedabad, May 10 : Adani Power Ltd on Saturday said it has won a tightly-contested bid to supply 1500 MW (net) of thermal power to Uttar Pradesh.

As part of the contract, India's largest private sector thermal power generator will supply power at a highly competitive tariff of Rs 5.383 per unit from a greenfield 2x800 MW (1500 MW net) ultra-supercritical power plant, to be set up under the Design, Build, Finance, Own, and Operate (DBFOO) model in the state.

This is further to the Uttar Pradesh cabinet approving the project earlier this month. The company will now sign a long-term Power Supply Agreement (PSA) with Uttar Pradesh Power Corporation Ltd. (UPPCL) under the Letter of Award (LoA).

'We are happy to have won the competitive bid to supply 1,500 MW power to UP and feel privileged to play a leading role in meeting the state's rapidly growing power demand. We plan to set up a modern and low emission ultra-supercritical plant in UP and aim to begin supplying reliable and high-quality power by FY30,' said S.B. Khyalia, Chief Executive Officer, Adani Power.

Khyalia said Adani Power would invest $2 billion in setting up the plant and related infrastructure.

The project is expected to generate direct and indirect employment of 8,000-9,000 during the construction phase and 2,000 once in operation.

Thermal power demand in UP is set to rise by 11,000 MW by 2033-34, owing to factors like industrialisation, urbanisation and modernisation. This 1,500 MW order is part of the government's initiative to meet that future demand.

This is second major PSA bid the company has won in the last one year, after receiving the composite 6,600 MW (1600 MW thermal and 5000 MW solar) LoI from Maharashtra State Electricity Distribution Company Ltd (MSEDCL) in September 2024, which subsequently has been converted into a PSA.

/IANS