Adani’s Godda Plant Approved for Indian Grid Connection

The Government of India has granted Adani Power Limited (APL) approval to connect its 1,600 MW Godda Ultra Super Critical Thermal Power Plant in Jharkhand to the national power grid via a “Line‑In Line‑Out” (LILO) arrangement of the Kahalgaon A–Maithon B 400 kV line.

Background

• The Godda plant, located in Godda district of Jharkhand, was originally established for exclusive export of electricity to Bangladesh under long‑term arrangements.
• On 29 September the Ministry of Power issued an order using powers under Section 164 of the Electricity Act, 2003, extending to APL similar powers as those of the telegraph authority under the Indian Telegraph Act, 1885 — enabling APL to lay overhead transmission lines and posts across immovable property.
• The proposed transmission line will traverse 56 villages across two tehsils — Godda and Poreyahat — in Godda district.
• The approval is valid for 25 years and is conditional on multiple clearances (local bodies, Railways, Highways, Civil Aviation, Defence, etc.) as well as compliance with wildlife/environmental norms (e.g., in case the route falls in a Great Indian Bustard area).

Regulatory and Strategic Implications

• The move has required a series of amendments:
  • The Ministry of Power amended the guidelines for import/export of electricity (cross‑border) in August 2024 to allow such connectivity.
  • The Central Electricity Authority (CEA) modified procedures for facilitating cross‑border flows.
  • The Central Electricity Regulatory Commission (CERC) amended its General Network Access regulations for the Inter‑State Transmission System (ISTS) and cross‑border trade regimes.
• Strategically, the decision allows the Godda plant to transition from an entirely export‑oriented asset (to Bangladesh) to one that can supply domestic utilities in India — enhancing grid flexibility, optimising utilisation of capacity, and hedging geopolitical/payment‑risk tied to export contracts.
• For power sector policy, this sets a precedent for export‑only plants to be integrated into the domestic grid when required — increasing the national supply base and linking private‑sector plants more tightly with India’s grid infrastructure.

Benefits and Risks

Benefits

• Adds ~1,600 MW of generation capacity available for domestic electricity supply, helping meet rising demand.
• Improved utilisation of the Godda plant that may have been under‑utilised due to export constraints.
• Enhances grid resilience: linking a plant previously directed entirely at exports now to the ISTS network in India.

Risks and concerns

• Land‑ and route‑clearance implications across village areas (56 villages) may lead to social and environmental issues (resettlement, transmission corridor impact).
• Wildlife/environmental compliance (e.g., if route intersects habitats of protected species like the Great Indian Bustard) will require careful management.
• Regulatory precedent: the speed and nature of amendments may raise questions about transparency and regulatory consistency.
• Dependence on final clearances: obtaining local and central approvals (Railways, Highways, Civil Aviation, Defence, CEA etc.) is still a process that may lead to delays or opposition.