The construction of the first 660MW unit of the $1.14 billion power project would be completed within 42 months of the letter of intent. The state government’s Department of Energy will make recommendations to the federal government for allocation of coal blocks for the project. However, Adani Power will be required to submit applications to obtain the necessary clearances.

The state government will provide infrastructure and land required for the project. The Madhya Pradesh State Electricity Board (MPSEB) is expected to transfer about 300 hectares of land to Adani Power. The Pench River has been identified as the water source for the power plant.

Adani Power will sell 10% of the net power generated at the Chhindwara to the state government at a variable cost. The state government will have the first right of purchase for up to 40% of the total electricity generated by the power plant for 20 years. The remainder of the power produced will be tied to medium and long-term contracts.

Adani Power and its affiliates are developing several power plants in India. By 2020, the company plans to develop about 20,000 MW of power-generating capacity. The firm is developing about 13,200 MW of power projects, including the Chhindwara plant.