Adani Power Ltd will soon sign a deal to set up a $2.2 billion coal-based power plant in Jharkhand, two people with knowledge of the matter said, as its controlling shareholder aims to nearly double capacity this decade.
Following the news breakout, the company's shares rose to as high as Rs 26.40 intra-day and eventually ended 3.8 percent higher on BSE at Rs 26.15, with strong recovery in broader markets also aiding the stock performance.
The utility, controlled by billionaire Gautam Adani, plans to build two power units with a total capacity of 1,600 megawatts (MW) and construction could begin by December, one of the people said, adding there is a meeting scheduled in Jharkhand next week and a deal would be sealed this month.
The other person, a Jharkhand government official, said most government approvals were in place already.
An Adani Power spokeswoman did not immediately respond to a request for comment.
The electricity generated from the Jharkhand units would be sold to power-deficient Bangladesh, where Gautam Adani is trying to expand as part of his goal to make the group a multinational energy and infrastructure conglomerate.
Flagship Adani Enterprises Ltd, which is fighting legal challenges to start a $7 billion coal mine near the Great Barrier Reef in Australia, wants to take its electricity generation capacity in India to 20,000 MW this decade through Adani Power.
Updated Date: Feb 05, 2016 17:00 PM