Sept. 2 (Bloomberg) -- Adani Power Ltd., the generation arm of India’s biggest coal importer, has been shortlisted to bid for a 1,238-megawatt thermal power project and coal-mining rights in Kosovo, an official said.
Adani Power and its Indonesian arm PT Adani Global are among four groups selected by the Eastern European nation’s government to bid to build two coal-based units of 560 megawatts and 678 megawatts and extract the fuel for use by the plants, said Ravi Sharma, chief operating officer of Adani Power.
“The deal is part of our plans to buy properties in India and overseas,” Sharma said in a telephone interview from Ahmedabad yesterday. “We may look at more such opportunities in Eastern Europe or elsewhere in Europe.”
Adani Power, controlled by billionaire Gautam Adani, plans to spend about 825 billion rupees ($18 billion) to increase capacity almost 17-fold to 16,500 megawatts in the next four years, with a focus on coal-fired generators. 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.
Final bids for the project are expected to be issued by next month with a submission date by February 2011, Sharma said in an e-mail. The other prequalified bidders include a venture by AES Electric Ltd. and Demir Export A.S., Turkey’s Park Holding A.S. and PPC/ContourGlobal LLP from Greece and the U.S.
Adani Power’s shares fell as much as 9.4 percent to 125.2 rupees before recovering to 134.5 rupees at 11:46 a.m. in Mumbai, compared with a 0.48 percent gain in the benchmark Sensitive Index.
The winning group will secure mining rights for about 330 million tons of lignite from the Sibovc South area to supply both units, Sharma said. Lignite is a brown-colored, low-ranked coal with a high moisture content used for power generation.
The Adani group is expanding overseas by investing in coal mines, power and infrastructure projects. Adani Enterprises Ltd., the parent company, agreed to buy a coal asset in Australia for A$3 billion ($2.7 billion) from Linc Energy Ltd.
The group plans to build a 270-kilometer (168 mile) coal railway in the South Sumatra province in Indonesia, investing $1.6 billion in the 50-million ton capacity venture, the Indonesian Investment Coordinating Board said last month. It has been shortlisted for a port project in Australia.
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