Adani Power has announced a significant delay in the commissioning of its 1.6 gigawatt (GW) Mahan Phase-II thermal power project located in Singrauli, Madhya Pradesh. Originally slated for completion sooner, the project is now expected to come online in the financial year 2028 (FY28).
Geopolitical Tensions Impact Project Timeline
The primary reason cited for this setback is the ongoing conflict in West Asia, which has created unforeseen challenges in the availability of essential resources. S.B. Khyalia, CEO of Adani Power, explained during the company's Q4 FY26 earnings call that the geopolitical situation is impacting both the supply of labor and critical materials like Liquefied Petroleum Gas (LPG).
The Mahan Phase-II project, comprising two 800-megawatt (MW) units, is 86% complete. While the company had initially hoped to commission the first unit in the last quarter of the current fiscal year, a conservative approach has been adopted due to the sustained impact of the conflict.
Revised Commissioning Targets for Adani Power
Adani Power has revised its overall commissioning targets. The company's earlier plan aimed for 2.9 GW in FY27, followed by 2.4 GW in both FY28 and FY29. Under the new conservative estimates, Adani Power now anticipates adding 1.32 GW in FY27 and 1.6 GW in FY28. This adjustment specifically moves the 1.6 GW Mahan project into the FY28 bracket, although efforts are still being made to commission the first unit earlier if conditions permit.
About the Mahan Project Expansion
The Mahan Energen Limited (MEL) facility, a subsidiary of Adani Power Limited (APL), is undertaking this expansion. It involves adding 1600 MW (two 800 MW units) to its existing 1200 MW (two 600 MW units) plant. The new units are utilizing Ultra-supercritical technology, known for its efficiency. Power generated from Phase-II is intended for Madhya Pradesh Power Management Company Ltd. under a long-term Power Purchase Agreement (PPA) for 1230 MW (Net).
"We thought we should be in a position to commission both units this year. We are still hopeful, but because of this ongoing geopolitical situation, which is slightly impacting the availability of labour and the availability of LPG, we are taking a conservative approach," said S.B. Khyalia.
The delay underscores how global events can significantly affect large-scale infrastructure projects, even those nearing completion, by disrupting supply chains and labor markets.