India’s clean energy ambitions face a pragmatic reckoning as Adani Power commits ₹10,500 crore to an 800 MW ultra-supercritical coal-fired power plant in Madhya Pradesh. The decision spots coal firmly at the heart of India’s energy security through the early 2030s despite lofty renewable targets.
Scheduled for commissioning within 54 months, the plant will be built under a Design, Build, Finance, Own and Operate model in Anuppur district, sourcing coal under the government’s SHAKTI policy to ensure fuel availability. The tariff was competitively secured at ₹5.838 per kilowatt-hour.
This investment aligns with government plans to add 88 GW of coal capacity by 2032—a 63% increase from earlier projections—placing India alongside China as one of the few countries still expanding thermal power in 2025. Together, these two nations account for 87% of global coal power projects proposed this year.
Adani Power’s CEO, SB Khyalia, said as saying, “India’s rapid economic growth demands robust energy infrastructure. Renewables alone cannot yet guarantee the grid stability essential for industry.”
Ultra-supercritical technology lifts efficiencies above 40%, reducing emissions intensity compared to older plants. Adani Power’s bid reflected these advances, emerging as one of the lowest-cost suppliers alongside Torrent Power’s concurrent 1,600 MW bid worth ₹22,000 crore in Madhya Pradesh.
The project will provide 6,000-7,000 construction jobs and 1,000 permanent positions during operations.
Adani Group plans ₹75,000 crore in clean energy investments targeting 100 GW capacity by 2030, spanning solar, wind, hydro and thermal sources. Its renewable arm is developing a 50 GW solar park in Gujarat, while subsidiary Adani New Industries aims for 10 GW of solar module manufacturing.
India commissioned 5.1 GW of coal power in the first half of 2025, surpassing full-year 2024 additions. Meanwhile, record renewable capacity installations continue, with 92 GW of coal projects currently in development nationally.
Adani Power has also taken active steps to address ESG considerations. The group commits to transparent sustainability disclosures aligned with global frameworks, reporting emissions reductions, water efficiency, and community engagement to meet investor and regulatory expectations.
The company’s financial performance remains robust, delivering returns exceeding 1,400% over five years with a market capitalisation above ₹2.3 lakh crore.
However, questions persist about the longevity of new coal investments amid forecasts of global demand peaking before 2030 and the expanding role of renewables and carbon pricing.
India’s energy transition reflects a gradual, pragmatic approach, balancing supply security with environmental priorities. State electricity boards continue to prioritise uninterrupted industrial supply, even as coal phase-outs accelerate in other regions.
Domestic coal availability, assured through government policies, further supports the expansion and mitigates supply risks.
Adani Power’s Anuppur project embodies this balancing act: blending rapid renewable growth with essential coal-fired capacity that supports grid resilience and industrial demand beyond current storage limits.
The project’s success depends on execution efficiency and evolving policy contexts. Renewable cost declines or tighter carbon regulations could challenge coal’s economics, but persistent grid and demand issues may validate the investment.
Ultimately, this project tests India’s ability to navigate energy security and climate goals simultaneously, with incremental pragmatism as the current modus operandi.
India faces an inescapable paradox. Its climate commitments demand a rapid uptick in renewables, yet industrial growth and grid reliability still necessitate coal-backed baseload capacity. This contradiction is mirrored in Adani Power’s strategy — a portfolio hedging renewables with continued coal investment as a pragmatic response to India’s unique energy challenges.
Experts note that while policy frameworks encourage renewables’ growth, practical constraints like fuel availability, transmission infrastructure, and storage gaps give coal plants a continued operational advantage. This calls for ongoing review of the balance India strikes between environmental goals and developmental imperatives.
Adani’s approach to ESG reporting signals a shift toward greater transparency and accountability, crucial for global investor confidence amid rising climate-conscious capital flows. The group reports annually against established international indicators, reflecting increased stakeholder expectations. Inclusion of community initiatives and resource efficiency metrics points to a comprehensive ESG integration process, although skeptics remain wary of coal’s long-term environmental impact.
The Anuppur project thus stands as a microcosm of India’s energy transition: complex, incremental, and deeply rooted in practical realities that test the limits of ambition and adaptability.
The author is the former Executive Director of Oil and Natural Gas Corporation (ONGC)
He is the Founder and Editor-in-Chief of Newscript Energy World