Adani Power may sign a deal to build a $2.2 billion coal-based power plant in Jharkhand as part of the company's plans to double its power generation capacity in India to 20,000 MW by the end of this decade.
The company is reportedly planning to set up two power units in the state with a total capacity of 1,600 megawatts (MW), sources close to the development told Reuters.
A meeting is scheduled in Jharkhand next week and the deal is expected to be signed as early as this month. The construction of the plant may begin in December this year, sources told the news agency.
A Jharkhand government official said the company has already received most of the government's approvals needed for the project.
Adani Power plans to sell the electricity generated at the proposed plant in Jharkhand to Bangladesh, as the company hopes to expand its presence in that country as well as make its mark as a multinational energy and infrastructure conglomerate.
Share prices of Adani Power ended 3.7 percent higher at Rs 26.15 on the Bombay Stock Exchange (BSE) on Friday, tracking the strength in the benchmark indices.
In August last year, a federal court in Australia had rejected the approval for Adani Enterprises' $7 billion coal mine project in the country. Environmentalists had opposed the project, claiming that it would pose a threat to the Great Barrier Reef.