Adani Mining, the mine developer-cum-operator (MDO) of Parsa East-Kente Basin mine in Chhattisgarh, would supply the coal mined from the area to Rajasthan state power generation utility RRVUNL.

In 2007, the block in Chhattisgarh was awarded to Rajasthan Rajya Vidyut Utpadan Nigam (RRVUNL) and the company in turn roped in Adani Enterprises for operating the mine.

According to the contract, Adani Mining will set up a coal washery, a coal handling plant and railway siding infrastructure to transport coal to RRVUNL's power plants.

RRVUNL would benefit immensely from the coal as it is of a superior quality and will help the firm run its power plants at a plant load factor of over 95 per cent. This will make the state power surplus.

For Adani Enterprises, this is the first amongst the four MDO contracts it bagged and marks the beginning of Adani Group's 'Resources' business vertical in India.

Besides the above mine, Adani Group has contracts for the Parsa block in Chhattisgarh, owned by Chhattisgarh State Power Generation Co with reserves of 150 mn t, Machakatta block in Odisha owned by MahaGuj Collieries with reserves of 1.2 bn t tonne and Chendipada block, also in Odisha, owned by UCM Coal Company with reserves of 1.5 bn t.