Mumbai: The list of stalled power projects got longer with the Adani Group formally saying on Tuesday that it was putting on hold three projects with a total capacity of 6,500 mw due to issues related to fuel supply.

"We have decided to go slow with our three power projects, as we have been unable to get coal linkages so far. As and when there is clarity on coal supply, we would begin the work on these projects, as we have all the necessary clearances for these projects at Chhindwara in MP and Dahej and Bhadreshwar in Gujarat, which together have a capacity of 6,500 mw," Adani Power Chief Executive Ravi Sharma told a select media briefing here.

On an average of 4 tonne coal for 1 mw of power generation, Adani Power requires around 25 million tonne coal for these 6,500 mw capacity, Sharma said.

On whether these projects have reached financial closure, Sharma answered in the affirmative, but did not give the details.

He also said that these projects are put on hold, despite securing all the land and environmental clearances. However, he added that the Dahej project is awaiting marine clearance, as this is a coastal project.

Apart from the coal shortage, the depreciating rupee and global economic downturn are also becoming a cause of concern for the company.

"Nearly 70 percent of the fuel required for our 3,300 mw Mundra plant is imported. The rising cost of imported coal and the depreciating rupee are likely to put pressure on the margins," he said.

The company already has an installed capacity of 3,300 mw in Mundra in Gujarat and plans aims to add another 6,000 mw by March 2012.

The company has set a target of having a capacity of 20,000 mw by 2020.

Adani Power, the largest coal-based private utility in the country, had earlier said it would increase its capacity to 16,500 mw, mostly in the Western region.

Coal accounts for as much as 55 percent of the country's power generation capacity of 1,82,344 mw. It is estimated that the country holds 10 percent of the world's coal reserves, but poor technology, lack of regulatory issues and the inability of the state-run Coal India to meet its production target, have left power companies struggling to access local supplies, forcing expensive imports from Indonesia and Australia.

The country is facing a peak power shortage of 13 percent and many power plants are running with bare minimum coalreserves.

Last year, the Adani Group acquired stakes in Australia's Galilee coal mines for USD 2.7 billion and Abbot Point Coal Terminal for USD 2 billion, joining a growing number of domestic companies acquiring overseas mining assets.

The company, which is also implementing a 40 mw solar power project in Gujarat, said the plant will be commissioned within three to four week.

"We plan to expand the capacity to 100 mw," he said, adding the company has already singed a power purchase agreement with the Gujarat state utility. However, he did not give any timeline.

The company's scrip, which has a market capitalization of Rs 14,650 crore, closed 1.32 percent down at Rs 67.20 on the BSE on Tuesday, which slipped 0.61 percent.

(Agencies)