Centre Clears Adani Power’s Godda Plant Grid Link; Shares Jump 7%

The Central Government has given Adani Power Limited (APL) permission to interconnect its Godda Ultra Super Critical Thermal Power Plant at Jharkhand with India's grid so that domestic distribution is possible along with its already existing sole supply to Bangladesh. This permission, given by the Ministry of Power on 29th September, allows APL to construct an overhead transmission line under a Line-In Line-Out (LILO) alignment of the Kahalgaon A–Maithon B 400 KV line.

The Godda plant, which was declared a Special Economic Zone (SEZ) in March 2019, is currently exporting electricity only to Bangladesh on a cross-border basis. After a change of government in Dhaka in August 2024, India took steps to permit interim connectivity with the domestic grid, foreseeing possible disruption in Bangladesh's scheduling of power and growing energy demand within India. The government has now granted APL powers similar to those of a telegraph authority under the Indian Telegraph Act, 1885. This allows the company to string and maintain lines over properties subject to clearances from concerned authorities.

The Ministry's move follows a string of unprecedented regulatory changes. These are:

* Amendments to the **Guidelines for Import and Export of Electricity (2018)** to facilitate fresh cross-border and domestic arrangements.
* Reforms by the **Central Electricity Authority (CEA)** to processes enabling cross-border power flows.
* Reforms by the **Central Electricity Regulatory Commission (CERC)** to both India's **General Network Access regulations** for its Inter-State Transmission System (ISTS) and cross-border trade of electricity guidelines.

These reforms between August and December 2024 were directed toward enabling APL's Godda plant to be connected into India's grid operationally and legally.

The new overhead line will traverse 56 villages in Godda and Poreyahat tehsils in Jharkhand. The sanction is for 25 years, though APL has to obtain consents from state authorities, Railways, National and State Highways, and only after obtaining clearance from the electrical inspector of the Central Government. Further, APL has to provide clearances from Civil Aviation, Defence, and other relevant departments to the CEA prior to the start of operations.

Environmental protections have also been required. Wherever any section of the transmission corridor is within the habitat of the Great Indian Bustard (GIB), APL shall follow instructions of the Supreme Court's orders in the case of GIB conservation (Petition No. 838 of 2019) and follow instructions from its technical/expert committee.

The sanction goes back to an August 6, 2024 letter from APL (formerly Adani Power Jharkhand Ltd) to the Ministry of Power, just after Bangladesh's Prime Minister Sheikh Hasina was ousted. The company had claimed that India's growing energy demand made it necessary to utilize the Godda plant for domestic use, especially during periods when Bangladesh had not scheduled power because of low demand, defaults, or geopolitical considerations. By August 10, the Ministry discussed and instructed CTUIL (Central Transmission Utility of India Ltd) to furnish standby ISTS connectivity information. Later, Ministry, CEA, and CERC guidelines and procedures modifications from between August to December 2024 secured the plant's compliance route.

The Ministry of Power's recent directive essentially enables APL to supply electricity to Indian distribution companies (discoms) when Bangladesh is not taking power. The action is likely to enhance grid stability and meet India's growing domestic power demand.

Though the ruling augments APL's position in India's energy landscape, it also points to India's changing energy diplomacy. The inclusion of the Godda plant marks a balancing act between fulfilling national needs and coping with cross-border obligations, underpinned by changing regional geopolitical realities.