Shares of Adani Power Ltd and Adani Green Energy Ltd experienced a notable boost on September 16, following the announcement of a significant power supply agreement with Maharashtra State DISCOM.

The stocks of both Adani group companies surged around 6 percent as investors reacted positively to the news.

Adani Power saw its shares trading more than 6 percent higher, reaching Rs 671.80 on the National Stock Exchange (NSE).

Similarly, Adani Green Energy's stock climbed nearly 6 percent, reaching Rs 1,895. This surge came after the companies secured a Letter of Intent (LoI) for a substantial power supply contract with Maharashtra State Electricity Distribution Co Ltd (MSEDCL).

The deal involves a combined total of 6,600 megawatts (MW) of hybrid solar and thermal power. Specifically, Adani Green Energy will provide 5,000 MW of solar power from its Khavda facility, marking one of the largest solar power capacity awards globally.

Concurrently, Adani Power is set to deliver 1,496 MW of thermal power from a new 1,600 MW Ultra-Supercritical facility, representing the largest thermal capacity award in India.

Under the agreement, Adani Green Energy will supply solar power while Adani Power will handle the thermal power component.

Both companies will sign separate contracts with MSEDCL to formalize their respective roles in the power supply.

The 6,600 MW capacity was secured through a competitive bidding process initiated by MSEDCL, which sought 1,600 MW of thermal and 5,000 MW of solar power.

The bidding terms allowed Adani Power to bid for both thermal and solar capacities, leveraging the complementary strengths of its affiliated companies in these sectors.

Adani Power's thermal capacity award will be executed on a Design, Build, Finance, Own, and Operate (DBFOO) basis, with coal linkages sourced under the SHAKTI Policy.

A 25-year Power Supply Agreement (PSA) will be established with MSEDCL, covering the supply of 1,496 MW of electricity.

This power will be generated from a new thermal plant employing ultra-supercritical technology, with delivery expected to commence three and a half years after the appointed date for Unit 1 and four years for Unit 2.

For the solar projects, Adani Green Energy has secured a fixed tariff of Rs 2.70 per kilowatt-hour (kWh) for a 25-year period.

The solar capacity will connect to the Inter-State Transmission System and will be developed in stages over three years, following the signing of Power Purchase Agreements (PPAs) with MSEDCL.

As of 11:10 am, Adani Power's shares were trading over 6 percent higher at Rs 671.80, while Adani Green Energy's stock had also risen nearly 6 percent to Rs 1,895.

This positive market response reflects investor confidence in the strategic expansion of Adani Group's power generation capabilities.