Adani Power Ltd has received final clearance from the Ministry of Coal to commence mining operations at the Dhirauli coal block in Singrauli, Madhya Pradesh. The project marks a significant step in enhancing the company’s fuel security and operational stability, Adani Power announced on Tuesday.

The mine is owned by Mahan Energen Ltd, a wholly owned subsidiary of Adani Power. The Dhirauli block has a peak rated capacity of 6.5 million tonnes per annum (MTPA)—with 5 MTPA from open cast and the remaining from underground mining. Geological assessments indicate gross reserves of 620 million metric tonnes (MMT) and net reserves of 558 MMT, ensuring a multi-decade coal supply.

“This is a pivotal milestone in Adani Power’s journey towards self-sufficiency and sustainable growth,” said SB Khyalia, CEO of Adani Power. He added that backward integration into coal sourcing would optimise input costs and support the delivery of affordable electricity to millions, while also generating long-term value for stakeholders.

As part of its responsible mining practices, the company noted that coal will be washed and processed on-site, reducing the transport of impurities and ensuring that emissions remain minimal.

The Dhirauli block is the first captive mine under Adani Power to receive government operational clearance. The company holds a 30-year mining lease for the block. The open cast production is expected to reach peak capacity by FY2026–27, while underground mining is scheduled to commence nine years later.

Coal from the mine will be used for Adani Power’s merchant power operations and will also feed the 1,200 MW Mahan Power Plant, currently being expanded to 3,200 MW.