The state regulator in Uttar Pradesh has hit the brakes on approving a power-purchase contract with Adani Power worth roughly $2 billion. Although the company had a deal to supply 1,500 MW at ₹5.38 per unit, the regulator found that the cost impacts of recent emission-norm relaxations (for sulphur-dioxide equipment) were not properly explained by the Uttar Pradesh Power Corporation Limited. The regulator has ordered the utility to bring Adani into the case, submit detailed cost breakdowns, and set the next hearing for December 18.
Why it matters: This is not just about power for UP — it raises questions about environment, transparency, how state deals are handled, and how the future of electricity in the state is shaped. The pause could influence investor confidence and public trust, especially as demand soars.
