Who Owns Adani Power?

Adani Power's sustainability profile is shaped by its thermal-heavy asset base. Over 95% of installed capacity as of 2025 runs on coal; there is no direct renewable capacity under the Adani Power entity. Renewable assets are housed under Adani Green Energy Limited, a separate listed company.

Within the thermal segment, Adani Power has invested in supercritical and ultra-supercritical boiler technology, which improves heat rate efficiency compared to subcritical plants, reducing coal consumption and carbon dioxide emissions per megawatt-hour by approximately 10 to 15%. Mundra's Phase 4 units (660 MW each) use supercritical technology commissioned between 2011 and 2012.

The company reports against India's Central Electricity Regulatory Commission environmental norms for sulfur dioxide, nitrogen oxides, and particulate matter. Flue gas desulfurization systems were under installation at multiple plants through 2024 to meet revised Ministry of Environment standards for coal plants near habitation zones, with compliance timelines extended by the Ministry through 2026 for older units.

Water consumption is a material issue for thermal plants. Adani Power's Mundra and Tiroda stations use sea water and river water respectively, with closed-cycle cooling reducing freshwater draw compared to older once-through systems. Zero liquid discharge systems are in place at newer plants. Community development programs run in areas adjacent to power plants, including vocational training centers in Tiroda (Maharashtra) and health camps in Kawai (Rajasthan), though the scale is not independently audited.

Adani Power does not hold certifications such as ISO 14001 across its full fleet as of 2025; individual plants have site-level environmental certifications.

• Central Electricity Authority: Mundra Power Plant recognized for high plant availability factor (above 85%) in multiple assessment years
• FICCI Water Mission Award (2018): Recognized for water conservation technology at Mundra
• Greentech Safety Award: Multiple plant sites recognized for safety standards in thermal operations
• Dun & Bradstreet India's Top PSU & Corporate Awards: Adani Power recognized among India's top power companies for operational scale and financial performance
• S&P Global CSA: Adani Group's ESG disclosures reviewed; Adani Power's reporting was noted for improvement in environmental metrics disclosure in 2023

Indonesian Coal Price Dispute and Tariff Arbitration (2012-2018): When Indonesia changed its coal export pricing regulations in 2011, Adani Power's cost of imported coal for Mundra rose sharply. Adani Power claimed supplementary tariff increases from Gujarat and Haryana state utilities under force majeure and change-in-law provisions. State utilities resisted, arguing the agreements were fixed. The Central Electricity Regulatory Commission and later the Supreme Court of India examined the claims through years of litigation. The Supreme Court in 2017 directed a partial tariff relief mechanism. Full resolution took until approximately 2018, by which time Adani Power had accumulated losses and debt from the cash flow gap. The controversy illustrated counterparty risk in long-term power purchase agreements between private generators and state utilities.

Hindenburg Research Report (January 2023): U.S. short-seller Hindenburg Research published allegations of accounting fraud and stock manipulation against Adani Group. Adani Power shares fell approximately 35% in the weeks following the report. The allegations focused on Adani Group's broader governance but included scrutiny of coal procurement related-party transactions relevant to Adani Power. SEBI investigated and closed the matter without major enforcement action in August 2024. Adani Group denied all allegations.

U.S. DOJ and SEC Indictment (November 2024): Gautam Adani and associates were indicted by U.S. federal prosecutors over alleged bribery of Indian state electricity officials to secure solar energy supply agreements. The indictment specifically concerned Adani Green Energy's solar projects, not Adani Power's thermal operations. However, Adani Power shares declined approximately 18% on the announcement due to investor concern about Adani Group governance broadly. The case was in pre-trial stage in U.S. federal courts as of May 2025.

Environmental Violations at Mundra (2012-2016): The National Green Tribunal and Gujarat Pollution Control Board cited Adani Power's Mundra plant for fly ash pond leakage and groundwater contamination concerns during the plant's rapid expansion phase. Adani Power was directed to implement containment measures and establish a compensation fund for affected farmers. Corrective work was carried out from 2014 onward; independent verification of full remediation was not publicly available as of 2025.

Coal Procurement Related-Party Concerns: Shareholder advisory firms and minority investor groups have raised recurring concerns about the pricing and terms of coal supply contracts between Adani Power and Adani Enterprises' coal trading operations. These transactions are disclosed in annual reports but the comparability to third-party market pricing is difficult to assess from public filings alone. SEBI's review as part of the 2023-2024 investigation addressed related-party disclosure standards but did not result in formal findings specific to coal supply contracts.