Ahmedabad, Sep 2 : Adani Power Limited, India's largest private thermal power producer, on Tuesday announced it has received approval from the Ministry of Coal to begin operations at the Dhirauli coal mine in Singrauli, Madhya Pradesh.

The company said this approval is a major step towards strengthening its fuel security and ensuring stable power supply in the future.

'Adani Power Limited has received approval from the Ministry of Coal to begin operations at the Dhirauli Mine in Singrauli district, Madhya Pradesh,' the company said in its stock exchange filing.

The Dhirauli mine is owned by Mahan Energen Limited, a subsidiary of Adani Power. It has a peak production capacity of 6.5 million tonnes per annum (MTPA), of which 5 MTPA will come from open-cast mining and the rest from underground operations.

The geological report shows that the mine has reserves of over 558 million tonnes, which will provide decades of fuel security and operational stability.

Adani Power plans to achieve the open-cast peak capacity of 5 MTPA by FY27, while underground mining will begin nine years later.

The company holds a 30-year mining lease for the block, ensuring long-term operations, the company added in its filing.

Highlighting the development, Adani Power CEO SB Khyalia said, 'The commencement of mining at Dhirauli marks a pivotal milestone in Adani Power's journey towards self-sufficiency and sustainable growth.'

'By integrating backward into raw material sourcing, we are not only optimising costs but also ensuring affordable power supply for millions of consumers. Our focus remains on responsible mining and long-term value creation,' Khyalia stated.

The company also said that it may wash and process coal within the mine area itself to reduce impurities and minimise emissions, keeping operations environmentally safer.

This is Adani Power's first captive mine to receive government approval for operations.

The coal from Dhirauli is expected to meet the company's merchant power requirements and also supply the nearby 1,200 MW Mahan Power Plant, which is currently undergoing a 3,200 MW expansion.

/IANS