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Adani Enterprises to invest $4 billion in mining coal blocks

16 Dec 2011 Evaluate

Adani Enterprises, the flagship of the Adani Group, will invest more than $4 billion to develop and mine coal blocks awarded to its various joint ventures with state electricity boards, even as the government boosts fund injection in power projects to build more thermal plants. The Gautam Adani-promoted company, which had last year acquired Australian coal company Linc Energy for $3 billion in one of the largest outbound transactions, has been appointed as a mining operator in five coal blocks through a competitive tender process, and will also build the infrastructure to deliver coal to projects under an agreement with electricity boards.

Adanis will acquire land, provide compensation to locals and wash coal before delivery to the various power projects being built by the Maharashtra, Gujarat and Chhattisgarh governments. The company will mine coal on behalf of the utilities. Till date, the company has committed to mine over 150 million tonnes of coal in India through mine development and operatorship business. A wholly owned subsidiary of Adani Enterprises, Adani Mining, will fund the coal development projects through internal accruals that could possibly include a proposed London listing. According to norms, an MDO - a mining development operator - is paid fee by the SEBs, but not before the operator builds part of the asset and accesses bank loans for the remaining portion of the project.

Adani Enterprises Share Price

2505.65 -6.10 (-0.24%)
08-May-2026 16:59 View Price Chart
Peers
Company Name CMP
Redington 222.80
Adani Enterprises 2505.65
Amrapali Industries 18.21
Rashi Peripheral 530.50
PDS 300.95
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