Hello,
Starting 2024, when the Indian government resumed long-term coal power purchase agreements, the Adani Group has won government contracts that will earn it revenue of more than Rs 13.27 lakh crore over the next 25 years.
All of these power purchase contracts but one were bagged from states governed by the Bharatiya Janata Party (BJP).
Between March 2024 and January 2026, eleven such long-term contracts have been bid out. Eight of them were by states governed by the BJP. The Adani Group won all of them, either on its own or as one among multiple awardees.
India jumping back on to the coal wagon has consequences for all of us as citizens. We might end up paying more for power than we needed to. And, the climate change imperative tells us, locking to new coal power for next 25 years is a bad idea.
Long-term power purchase agreements are criticised for good reasons:
- They lock in prices that can become uncompetitive as renewable energy costs fall. What looks reasonable today may be expensive by 2035.
- Demand forecasts over 25 years are unreliable; states may end up paying for capacity they don't need (take-or-pay clauses mean you pay even if you don't draw power).
- Removes flexibility to switch to cheaper or cleaner sources mid-contract.
When a government gets locked into such contracts, the citizens ultimately pay for expensive power, directly or indirectly.
Read the story by Shreegireesh Jalihal here: Adani Group Sweeps All Coal Power Tenders from BJP States. Set to Earn Rs 13.27 lakh Crore over 25 years.
Warm Regards,
Nitin Sethi
Founding Editor
The Reporters' Collective