ADANI POWER - GOOD FOR LONG TERM INVESTORS.

Adani Group is a conglomerate having varied 

interest in the field of Coal Mining,Coal

Trading,Shipping,Power generation ,Power 

trading,Power transmission…etc.

Adani Power Ltd(APL)is a company under this 

fold which is developing operate and maintain

power projects in India. APL has four power 

projects under various stages of 

implementation with a total capacity of 6600 MW

.It is expected to complete 9900 MW by

2013 and 20000 by 2020.It is currently 

operating with a capacity of 330 MW 

(Mundra unit -1).Recent IPO proceeds 

are using to fund projects like Thiroda,

Mundra Phase 4,Dahej and Kawai.There is lot of 

companies came out with public issues from

power generation sector recently but

APL has some uniqueness .First of all , Most 

of the capacity is expected to come up in the

Western region, which now has an energy deficit of

16 per cent and peak deficit of 19 per cent.

Secondly, the Adani group has  dedicated transmission

lines to evacuate power, the opportunity for higher

realisations from merchant power agreements and tax

benefits due to its SEZ status.Thirdly,APL can easily

access fuel for power (mainly coal) due to its 

parent’s vertical integration.Again,the company 

already signed Power Purchase Agreement for its Mundra

and Thiroda projects.Even the execution risk is there,

considering the above facts and strength of the group ,

it is one of the best play from the power sector.

Currently it is quoting around Rs.114/-