By Shishir Prashant 
PrashantNews
Billionaire Gautam Adani-owned Adani Power Ltd (APL) is setting up a pit-head thermal power plant in Chhatisgarh for which the coal blocks were allocated to Uttarkahand by the centre, a top government official said on Tuesday after a state cabinet meeting.
For this plant, the state cabinet has approved the purchase of power by the government-run Uttarakhand Power Corporation Ltd (UPCL) from Adani Power. The decision to this effect was taken at a meeting of the state cabinet presided by Chief Minister Pushkar Singh Dhami on Tuesday.
The Uttarakhand Cabinet has approved the purchase of 1,320 MW of coal-based power from Adani Power Limited for 25 years to ensure energy security and a reliable supply of base-load electricity in the state, Bansidhar Tiwari, additional secretary to the CM said.
The decision was taken on a proposal submitted by the Uttarakhand Power Corporation Limited (UPCL). Adani Power emerged as the lowest bidder (L1) with a total tariff of ₹5.746 per unit.
Of the 1,320 MW capacity, the contracted capacity will be 1,234 MW, according to the Cabinet decision.
The Cabinet has also authorised UPCL to sign the Power Supply Agreement (PSA) and other related documents with Adani Power, fulfil the necessary conditions and obtain the required statutory approvals from the Uttarakhand Electricity Regulatory Commission (UERC).
The long-term agreement is aimed at addressing Uttarakhand’s growing electricity demand and ensuring a stable supply of base-load power, particularly when generation from hydropower and other renewable sources fluctuates.
The decision assumes significance for Uttarakhand, where hydropower constitutes a major component of the state’s electricity generation. While renewable energy provides relatively clean power, its availability can vary depending on weather and seasonal conditions, making dependable base-load supply important for maintaining grid stability.
The 25-year arrangement, however, also represents a significant long-term financial commitment for the state. The tariff of ₹5.746 per unit will therefore remain an important factor in determining the eventual cost of power to consumers, particularly as electricity markets and generation costs evolve over the coming decades.
The approval is subject to regulatory scrutiny and statutory clearances from UERC before the agreement can be operationalised.
The move comes as Uttarakhand seeks to balance its growing power requirements with its long-term dependence on hydropower and the increasing integration of renewable energy into the state’s electricity mix.