Shares of Adani Power and Adani Green shot up by nearly 4% on Monday after the companies received a letter of intent from the Maharashtra State Electricity Distribution Company (MSEDCL) for a power purchase agreement.

What Happened: Adani Power and Adani Green will sign separate contracts with MSEDCL for the supply agreement, the group said in a press release on Sunday.

Adani Green will supply 5 gigawatts of solar power from the world's largest renewable energy park being developed at Khavda in Kutch District of Gujarat, to Maharashtra. This is the largest solar power capacity award globally, succeeding the company’s record-setting green power award received in 2020, it added in the statement.

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Adani Power will supply 1,496 megawatts of thermal power to Maharashtra state from a new 1,600 megawatts ultra-supercritical thermal power project.

The solar energy power purchase agreement will be at a flat tariff of ₹2.70 per kilowatt hour for a supply period of 25 years from the date of commissioning. 

Following the announcement of the 6.6 gigawatts power deal, Congress politician, Jairam Ramesh, took to X to criticise the deal. Ramesh Ramesh accused the state's ruling alliance, Mahayuti, of pushing through the deal just before what he predicted would be a "landslide defeat" in the upcoming Maharashtra assembly elections.

Price Action: Adani Power was up 6.51% to ₹674.70, whereas Adani Green gained 5.2% to trade at ₹1,881.90 on Monday morning.

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