Mahan Super Thermal Power Project

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Mahan Super Thermal Power Project is an operating power station of at least 1200-megawatts (MW) in Bandhaura, Singrauli, Sidhi, Madhya Pradesh, India with multiple units, some of which are not currently operating. It is also known as Bandhaura Ultra Super Critical Thermal Power Plant (USCTPP Unit 1, USCTPP Unit 2), Bandhaura power plant.

Location

Table 1: Project-level location details

Plant name Location Coordinates (WGS 84)
Mahan Super Thermal Power Project Bandhaura, Singrauli, Sidhi, Madhya Pradesh, India 24.008674, 82.41703 (exact)

The map below shows the exact location of the power station.

Loading map...


Unit-level coordinates (WGS 84):

  • USCTPP Unit 1, USCTPP Unit 2, USCTPP Unit 3, USCTPP Unit 4, Unit 1, Unit 2, Unit 3: 24.008674, 82.41703

Project Details

Table 2: Unit-level details

Unit name Status Fuel(s) Capacity (MW) Technology Start year
USCTPP Unit 1 construction[1] coal: unknown 800[1] ultra-supercritical[1] 2027 (planned)[2]
USCTPP Unit 2 construction[1] coal: unknown 800[1] ultra-supercritical[1] 2027 (planned)[2][3]
USCTPP Unit 3 pre-permit[4] coal: unknown[4] 800[4] ultra-supercritical[4]
USCTPP Unit 4 pre-permit[4] coal: unknown[4] 800[4] ultra-supercritical[4]
Unit 1 operating coal: unknown 600 subcritical 2012
Unit 2 operating coal: unknown 600 subcritical 2018
Unit 3 shelved coal: unknown 600 subcritical

Table 3: Unit-level ownership and operator details

Unit name Owner Parent
USCTPP Unit 1 Mahan Energen Ltd [100%] Adani Power Ltd [100.0%]
USCTPP Unit 2 Mahan Energen Ltd [100%] Adani Power Ltd [100.0%]
USCTPP Unit 3 Mahan Energen Ltd [100%] Adani Power Ltd [100.0%]
USCTPP Unit 4 Mahan Energen Ltd [100%] Adani Power Ltd [100.0%]
Unit 1 Mahan Energen Ltd [100%] Adani Power Ltd [100.0%]
Unit 2 Mahan Energen Ltd [100%] Adani Power Ltd [100.0%]
Unit 3 Mahan Energen Ltd [100%] Adani Power Ltd [100.0%]

Project-level coal details

  • Coal source(s): Tokisud North coal mine, Jharkhand, Dhirauli coal mine, India (nearby commercial mines)
  • Permit(s): Environmental Clearance[5]

Background details

When it received its environmental clearance in 2007, this project was conceived as a 2,000 MW project (4x500 MW). By 2010 the project had been scaled back to 1,200 MW (2 x 600 MW).[6] In March 2016 it was scaled back up to 1,800 MW (3 x 600 MW).[7]

The first unit of 600 MW of Mahan I was commissioned in 2013. The second unit of 600 MW was expected to be completed in 2014, but the power station has faced delays in construction and operation due to difficulties in securing mining approval for the Mahan Coal Block, the captive mine for the Mahan Power station and Mahan Aluminium power station.[8]

Unit 2 was under construction,[9][10] and planned for commercial operation in June 2016,[11] later pushed to 2017.[12]

Unit 2 was synchronized in July 2017,[13] and was planned for commissioning in 2018.[14] Unit 2 was reported to have "stabilized operations" in March 2018.[15]

In April 2023, EAC meeting minutes summarized the following about the operating plant (in part): "The proposal is for amendment in Environmental Clearance (EC) granted by the Ministry vide letter dated 20.04.2007 for the 4x500 MW Mahan Super Thermal Power Plant at village Bandhaura, Tehsil Mada, District Singrauli, Madhya Pradesh by Mahan Energen Limited. Further, the Ministry vide letter dated 10.02.2009 has changed the capacity from 4x500 MW to 3x600 MW, followed by amendment in EC dated 23.08.2013 and 8.04.2016. The Ministry has also transferred the EC vide letter dated 15.09.2022 from M/s Essar Power (M.P.) Ltd to M/s Mahan Energen Limited." The EAC approved an amendment in Environmental Clearance conditions related to the "continuous monitoring for radio activity and heavy metals in coal and fly ash."[16]

Reporting in March 2024 announced that Mahan Energen, a wholly-owned subsidiary of Adani Power, had entered into a 20 year Power Purchase Agreement (PPA) with Reliance Industries for 500 MW of the Mahan Super Thermal coal plant under India's captive power user policy.[17] According to the news, this would account for one of the power station's entire 600 MW units, presumably Unit 1 or 2.

According to reporting from April 2024, the Madhya Pradesh Electricity Regulatory Commission (MPERC) approved switching a Power Purchase Agreement (PPA) for Adani's cancelled Pench Thermal Power Project to the Mahan Super Thermal Power Project. Adani had sought approval for the PPA transfer in July 2023. The Pench project, which stalled following community opposition, was intended to run on imported coal and accordingly had a higher tariff of 4.78 rupees per kWh (US$0.057 per kWh). With the Mahan plant running on cheaper domestic coal and having an existing tariff of 3.2 rupees per kWh (US$0.038 per kWh), the PPA transfer represented a windfall gain for Adani.[18]

Unit 3

In April 2016, Essar received environmental clearance for a 3 x 600 MW coal plant.[7]

As of May 2020, unit 3 was not listed as under construction.[19]

Given Essar's debts in 2018, and with no progress on the unit since 2016, it seemed likely that the unit was shelved or cancelled.

However, Adani's application to transfer the Environmental Clearance in 2022 (below), implied that plans for the unit could be revived.

Ultimately, by November 2022, permitting documents only referenced and existing 1,200 MW and a 1,600 MW expansion,[20] so a third 600 MW unit appeared unlikely.

Expansions proposed (USCTPP)

Phase II Expansion

In December 2021, Essar Power M.P. applied for a 1,600 MW (2x800 MW) known as the Bandhaura Ultra Super Critical Thermal Power Plant.[21][22][23]

In January 2022, the Expert Appraisal Committee "recommended the proposal for grant of Standard ToR for conducting EIA study for expansion of 1600 MW (2x800MW) Bandhaura Ultra Super Critical Thermal Power Plant in an area of 920 Acres at Village Bandhaura, Nagwa, Karsualal and Khairahi, District Singrauli, Tehsil Mada, (Madhya Pradesh) by M/s Essar Power (M P) Limited under the provisions of EIA Notification, 2006 and as amended along with (...) additional/specific ToR."[24]

Terms of Reference were formalized in February 2022.[25]

There were formally transferred in November 2022.[20]

In April 2022, the transfer of Environmental Clearance from the original 3x600 MW (Mahan Energen Limited) proposed expansion to the now proposed 2x800 MW expansion of Mahan Super Thermal Power Project was listed by MOEF as "Returned to proponent due to Shortcoming(TransferEC)."[26] The MOEF had requested the additional information from the Mahan Energen Ltd (Adani Group):

  • 1. "undertaking on non judicial stamp paper"
  • 2. "Valid CTO"[26]


A letter submitted by Adani clarified that "the said proposal is being submitted for name change and transfer of project to Mahan Energen Limited, is a wholly owned subsidiary of APL" and "proposed for expansion of Bandhaura Super Thermal Power Project from 1200 MW (2x 600 MW) by additional capacity of ultra-super critical of 1600 MW (2x800 MW)".[27]

In February 2023, Adani had submitted a new EC application (rather than a transfer) for the proposed expansion.[28]

In March 2023, the EC was initially 'deferred' due to shortcomings in the proposal.[29]

The proposal was granted Environmental Clearance in May 2023.[30] Details of EC for the project's expansion were available via the MOEF's website, Parivesh.[31]

The official clearance appeared dated July 23, 2023.[32]

In June 2023, a geotechnical investigation was completed at the site of the Phase II expansion in preparation for construction.[33]

In July 2023, Adani Watch reported that the draft EIA report for expansion of the Bandhaura power plant stated that coal would be transported to the project entirely using mechanized systems. However, when expansion of the project’s capacity was approved, the EAC allowed the Adani Group three years of leeway during which it could transport the coal by road. The Adani Group told the government that 90% of the coal extracted from the Dhirauli coal mine will feed the Bandhaura plant.[34]

According to reports in August and September 2023, Mahan Energen had contracted Rs 40 billion worth of power generation equipment from BHEL for the expansion.[35][36] One report estimated that the 2 x 800 MW expansion project would be completed in 35 months (from Aug. 2023), or in July 2026.[37]

The project was included in the list of 'Thermal Plants Under Construction' in the November 2023 Broad Status report of the Central Electricity Authority, although progress achieved was still stated at 0% for both units.[38] Completion was expected in January 2027 for Unit 1 and June 2027 for Unit 2.[39]

In a March 2024 Adani presentation to investors, Adani indicated that Phase II was under construction, and the two units were expected to be completed in December 2026 and June 2027.[40] However, while Planet imagery showed that ground clearing had taken place at the Mahan site from April 2023 to March 2024, construction did not appear to have begun yet.

Adani was reportedly awarded coal mining rights for a new billion-tonne coal reserve in March 2024, which would be used in part to fuel the Mahan coal plant, presumably in preparation for the new expansion units.[41] (For more information, see below: "Coal Supply.")

The April 2024 Broad Status Report of Under Construction Thermal Power Projects indicated that Units 3 and 4 of "Mahan USCTPP, Ph-II" were anticipated to run trials in 2026 and 2027; However, the update seemed likely to be referring to Units 1 and 2 of the Phase II expansion, which had obtained EC from the MoEFCC in July 2023 as indicated in the report.[42] The two units appeared to have begun physical construction in April 2024, as the April 2024 Broad Status was the first to report 8% and 6% physical progress for Units 1 and 2, respectively.[42] According to the May 2024 Broad Status report, both units were expected to begin commercial operation in 2027.[43]

Phase III Expansion

In February 2024, the EAC's thermal project meeting minutes included a proposal for a second expansion of 1,600 MW (2 x 800 MW) at the Bandhaura (Mahan Energen) power station.[44] If developed, the expansion (dubbed "Phase III") would bring the coal plant's total operating capacity to 4,400 MW. According to the EAC's meeting minutes, the committee had recommended the grant of ToR for the new Phase III expansion. The expansion's ToR were formally granted in February 2024.[45]

In August 2024, Bharat Heavy Electricals Ltd. (BHEL) was awarded a contract to supply equipment for the expansion and oversee its construction and commissioning. BHEL reportedly expected to complete the Phase III project in 55 months.[46]

Ownership and financial problems

According to media reports in May 2018, Indian multinational bank ICICI Bank, in a consortium that includes Rural Electrification Corp, Power Finance Corp, Punjab National Bank and IDFC, is looking to sell Essar Power to recover Rs 6,600 crore of dues. Essar Power, in turn, has approached the ICICI Bank-led consortium for a strategic restructuring of its debt. Essar Power has a power purchase agreement for 300 MW from the Mahan plant with group company, Essar Steel, which itself is undergoing insolvency resolution process. For the remaining 900 MW of untied capacity, the company is looking to sign medium-to-long term power purchase pacts.[47]

Sale to Adani Power

In June 2021 it was reported that Adani Power of India will acquire the coal plant from Essar for Rs 3,000 crore. The closure of the transaction is subject to obtaining approval from the NCLT and satisfaction of conditions precedent under the Resolution Plan.[48]

The 2021 expansion application summarized the following:[23]

"EPMPL was admitted into the Corporate Insolvency Resolution Process (CIRP) vide the order dated 29th September 2020 passed by Hon’ble NCLT Principal Bench New Delhi (NCLT) and Mr. Ashish Chhawchharia was appointed as Resolution Professional. Further vide its order dated 01st November 2021, the Hon’ble NCLT pronounced approval of the Resolution Plan submitted by Adani Power Limited (APL), thereby concluding the CIRP of the Company. Pursuant to the said order and as per the terms of the Resolution Plan of APL, an Implementation & Monitoring Committee (IMC) has been constituted (...) and the powers of the Board of Directors of EPMPL are now exercised by the IMC till Effective Date under Resolution Plan. APL is in advance stage of Implementation of Resolution Plan."

In March 2022, it was reported that the company had completed the acquisition. The cost of acquisition of Essar Power M P Ltd, which was undergoing insolvency resolution, was over Rs 4,250 crore, including the estimated cost of compliance with environmental and emission norms, it said in a regulatory filing.[49]

In April 2022, Adani appeared to submit an application to transfer the Environmental Clearance for the 3x600 MW Mahan Super Thermal Power Project and the Terms of Reference for the expansion. The proposal was listed as "Accepted by MS" on May 13, 2022 in MOEF's online portal,[50][51][52] and it seemed accepted by September 15, 2022.[53] However, the EC transfer appeared to just be for the existing 2 x 600 MW units.[54]

In March 2023, MS accepted an application from Adani for the proposed 1,600 MW expansion to the plant.[28] More information is available above.

In March 2024, reporting announced that Reliance Industries had acquired 26% stake in the Mahan Super Thermal power station in order to be allocated 500 MW of power for captive use.[55]

Financing

Units 1 and 2: Rs 7500 crore or US$1,018,078,095 in debt from ICICI Bank, Power Finance Corporation, Rural Electrification Corporation, and Punjab National Bank;[56] Rs 3300 crore or US$447,986,839 in equity from Essar Group.[57]

In the analysts' conference call in January 2024, Adani stated that they have prepaid the entire debt in Mahan Energen for the Phase 1 project, it is debt-free now.[58]

USCTPP: As per November 2023 Broad Status report, financial close was achieved in June 2023 with project cost estimated at Rs 12,439 Crore. (ca USD 1.5billion).[38] However Adani also did not mention any financing agreements for this project in their analysts' conference call in January 2024.[58] In a media source from March 2024, Adani indicated that they will inject close to Rs 30,000 crore to amplify the power generation capacity at Mahan Energen plant, escalating it from the existing 1,200 megawatts to 4,400 megawatts.[59]

The rating report by India Ratings published in August 2024 clarified that the expansion of 1.6GW entails a capex of INR121.3 billion (ca USD 1.45 billion) spread over FY25-FY28, funded in debt/equity ratio of 70:30 with debt of INR84.9 billion (ca USD 1 billion).[60] The rated term loan of INR84.9 billion matures in 2043 (presumably, a 20-year loan signed in 2023). Adani provided a corporate guarantee for the project debt. Debt draw-down commenced in June 2024.[61] It was not clear who the financing institutions are, presumably Indian banks.

Coal supply

Coal for the original proposal was first expected be sourced from the Mahan coal block through a 50:50 joint venture with Hindlaco Industries, called Mahan Coal Ltd.[62][63] (Note: this plant is not to be confused with Hindlaco Industries 900MW Mahan Aluminium power station which is also drawing coal from the Mahan coal block.)

In the 2021 expansion application, the new proposal was conceptualized to be operated by utilizing coal from nearby commercial coal mines and water from the Rihand reservoir.[23]

Coal mine stalled

Mahan Coal Ltd (MCL) is a jointly owned company by London-listed Essar Energy and India's Hindalco Industries to mine the Mahan coal block in India.

In its 2010 annual report Essar complained that the Mahan coal black had not received approval for development: "While we are optimistic of a favourable outcome, we will not be in a position to supply coal from our own mines ahead of the commissioning of the 1,200 MW Mahan I coal fired power project. The first unit of this power plant will commence commissioning in September 2011. We have therefore applied to Coal India Limited for tapering coal linkage until our own mines are operating at full capacity. We expect to receive this clearance shortly."[6]

In its 2013 annual report, Essar announced that it had received stage 1 forest clearance for the Mahan coal block. The company said that it plans to seek additional coal from Coal India’s e-auction process and to consider the use of imported coal.[64]

The 2013 annual report further stated that:[64]

The Stage 2 clearance is progressing well and is expected in the next few months and, once secured, we estimate it will take 9 to 12 months to produce first coal and it will then take between two to three years to ramp up to the full capacity of 8.5 mmtpa. In addition to e-auction and imported coal, Essar Energy has applied for medium term allocations of coal under Coal India’s tapering coal linkage system. Receipt of a tapering coal linkage allocation will improve the economics of Mahan I.

In February 2014, Mahan Coal Ltd was granted environmental approval to extract around 100 million tonnes of coal.[65]

The coal allocation was later scrapped in September 2014 following a Supreme Court order. In the reallocation process, which started in February 2015, Essar Power secured the bid for the Tokisud North coal mine at a bid of Rs.1,110 for every tonne of coal mined. Coal from this mine will be used for Essar’s Mahan plant.[66] Essar will contract with the AMR Group for mining services. Essar plans to begin mining within 2015.[67]

New proposed coal block: Mara II Mahan (2024)

In March 2024, Adani won the mining rights for the billion tonne Mara II Mahan coal block in Madhya Pradesh, which would reportedly be used to fuel the Mahan coal plant.[41]

Protests and opposition

Local villagers in the forest area of the proposed Mahan mine have stated that they will resist the mine. According to Reuters, final forest clearance for MCL came from environment minister Veerappa Moily, who in less than three months approved more than 70 big projects worth over $40 billion, some of which were stalled by his predecessors over environmental concerns. Moily has been accused of acting in haste for industrial interests.[65]

Inhabitants say clearance was given to the project in violation of the Forest Rights Act, a 2008 law that gives affected communities a right over the forests. A village vote in Amelia supporting the MCL mine was rigged with hundreds of forged signatures, they said. MCL said it had no say in the vote. The allegation has forced district authorities to launch an inquiry, and the outcome could scupper the mining project.[65]

Greenpeace says MCL's project will fell hundreds of thousands of trees and affect the livelihoods of 14,000 people who sell products such as mahua seeds and tendu leaves, used to make cheap alcohol and hand-rolled cigarettes (beedi) respectively.[65]

In July 2023, Adani Watch reported that coal dust from trucks transporting coal to the power plant was blanketing local villages, marketplaces, forests, and fields, bringing hardship to residents. One member of the Khairwar community stated:[68]

'Our community has been reduced to a life of poverty...In the past fifty years, there has been massive infrastructure development in the Singrauli area. But none of the benefits of economic development have trickled down to us. On the contrary, we are forced to bear the brunt of this lop-sided development that has nothing in it for indigenous communities like ours, even though we have nurtured and protected the natural resources of Singrauli since time immemorial. These industries have not only polluted the air but also the natural water sources upon which we are dependent.'

Articles and Resources

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Additional data

To access additional data, including an interactive map of coal-fired power stations, a downloadable dataset, and summary data, please visit the Global Coal Plant Tracker on the Global Energy Monitor website.