Adani Power Ltd., the generation arm of India’s biggest coal importer, said it plans to spend about 825 billion rupees ($17.5 billion) to increase capacity almost 17-fold to 16,500 megawatts in the next four years.
“We will focus on coal-fired capacity and that will remain our mainstay,” Chief Executive Officer Ravi Sharma said. “We believe the power industry in India will see a big boom in the coming years, considering the energy shortfall.”
Billionaire Gautam Adani-controlled Adani Power aims to reach a capacity of 20,000 megawatts by 2020, Sharma said in a telephone interview yesterday. The utility, which raised 30 billion rupees in a share sale last August, currently produces 990 megawatts at Mundra in Gujarat state, the site of a 4,620- megawatt plant.
Asia’s third-largest economy aims to boost power generating capacity by 78,000 megawatts in the five years ending March 2012 and by 100,000 megawatts in the following five years to meet demand to sustain an economy forecast to grow more than 9 percent this fiscal year.
The Indian economy grew 8.8 percent in the three months through June from a year earlier, the fastest pace in 2 1/2 years, the Central Statistical Organisation said in a statement in New Delhi yesterday.
Adani Power’s shares fell 0.1 percent to 135.95 rupees at the close of trading yesterday in Mumbai. The stock has risen 37 percent this year, compared with a 3 percent increase in the benchmark Sensitive Index.
Adani Power, based in Ahmedabad, also plans to build plants in the states of Rajasthan and Madhya Pradesh, Sharma said, without giving funding details. The company has an agreement to draw $200 million in external commercial loans by September, Chief Financial Officer Ameet Desai said on Aug. 9.
Adani Power will use about 80 million tons of coal from its overseas and Indian mines, Sharma said.
Adani Enterprises Ltd., the parent company, agreed to buy a coal asset in Australia for A$3 billion ($2.8 billion) from Linc Energy Ltd.