Report by Kamgar Ekta Committee correspondent
In March 2026, Adani Power received a Letter of Award (LoA) from MSEDCL for the supply of 1,600 MW of power from one of its upcoming ultra-supercritical thermal power projects. The supply under the proposed 25-year Power Supply Agreement is scheduled to commence from financial year 2030–31. The contract includes a pre-determined coal linkage, ensuring fuel security and enabling cost-effective, reliable electricity delivery.
On 14th May, 2026 Maharashtra State Electricity Distribution Company Limited (MSEDCL), filed a petition with Maharashtra Electricity Regulatory Commission (MERC), seeking its approval for procuring 1,600 MW power from Adani Power.
Within just 35 days, MERC in its order dated 19th June, 2026, gave its approval. This is the lightning speed with which various government bodies move when interests of private capitalist companies are involved.
In the same order, MERC has ordered MSEDCL and Maharashtra State Power Generation Company Limited (MSPGCL), to terminate the Power Purchase Agreement (PPA) with the MSPGCL’s Bhusawal Unit 3 (210MW), Khaparkheda Units 1&2 (420MW),Nashik Units 3,4,&5 (630MW), Chandrapur Units 3 to 6 (340 MW). The existing PPAs with these generating plants are valid up to the year 2034, but as per this order they will be terminated by the year 2030 that means 4 years before the due date! As mentioned in the order MSPGCL in its reply to MERC stated that it has no submissions to make in the matter of advance termination of the PPAs!
It should be remembered that the MSEDCL and MSPGCL are both public sector enterprises of the Maharashtra State government.
MSPGCL, popularly known as Mahagenco, has a total installed power generation capacity of 13,880.55 MW out of which thermal power (coal based) contributes 10,200 MW. Out of this capacity, as per the above order, about 1600 MW capacity will have to be shut down.
This process of signing long term PPA with private companies, started with the 6,600 MW mega- agreement signed by MSEDCL and Adani Group companies in September 2024. Adani Green Energy signed a PPA with MSEDCL for the supply of 5,000 MW of solar power from the world’s largest renewable energy park being developed at Khavda in Kutch, Gujarat. Adani Power signed a PPA with MSEDCL to supply 1,496 MW (net) of thermal power from a new 1,600 MW ultra-supercritical thermal power project. Both PPAs are for 25 years. On April 1, 2026, Adani Power secured a contract from MSEDCL for the supply of 2,500 MW of renewable energy round-the-clock (RE RTC) power. In summary, between 2024 and 2026 MSEDCL has awarded Adani Group a cumulative 10,100 MW of new power capacity across thermal and renewable segments — a massive long-term energy security bet for Maharashtra spanning 25 years.
Mahageneco is essentially a captive supplier to MSEDCL. Any large new PPA MSEDCL signs with private players like Adani directly erodes the share of power procurement from Mahagenco. With the current order of MERC, the hidden plan of government is becoming starkly clear- “to hand over entire power generation requirements of the state of Maharashtra to private capitalist companies, bit by bit.”
The MERC order of closure of power plants is not only a threat to the jobs of more than 14,000 permanent and more than 20,000 contract workers employed with Mahageneco, but also a threat to all the working people and farmers of Maharashtra who are consumers of electric power and for whom electric power is one of the basic necessity of life. Hence, it is extremely necessary that Maharashtra power sector workers and all the working people of Maharashtra and their organizations, unitedly defeat these moves with a determined united struggle.