Adani Power on Wednesday said Madhya Pradesh Electricity Regulatory Commission has approved setting up of a 1,320 MW thermal power plant in Madhya Pradesh.

The commission has also approved sale of entire electricity from the plant to the state through Adani Power arm Pench Thermal Energy.

Pench Thermal Energy has signed a power purchase agreement with MP Power Management Company Ltd (MPPMCL) for procurement of 1,320 MW of electricity on long-term basis.

The power would be supplied from the new power station of 1,320 MW capacity to be set up with super critical technology on design, build, finance, own and operate (DBFOO) basis by sourcing fuel from the allocated coal linkage under the SHAKTI policy.

The company said in a statement that the said power purchase agreement has been duly approved by the MP Electricity Regulatory Commission.

This development affirms the company's belief in the long-term growth potential of the power sector, and the importance of thermal power in realising the ambitious target ofPower for All, it added.

The company is confident of combining its proven project execution skills and accumulated experience of operating and maintaining India's largest private sectorpower generation capacity, it added.