Did Adani Power Just Transform Bihar's Energy Landscape?
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Synopsis
In a landmark agreement, Adani Power Ltd has secured a 25-year contract to supply 2,400 MW of electricity to Bihar, promising significant investment and job creation. This development marks a transformative step for the state's energy landscape and aligns with India's ambitious power goals.
Key Takeaways
- Adani Power signs a 25-year agreement with BSPGCL.
- 2,400 MW power supply to Bihar.
- Investment of $3 billion for a new plant.
- Creation of 10,000 to 12,000 jobs during construction.
- Operational jobs: 3,000.
New Delhi, Sep 13 (NationPress) In a major breakthrough, Adani Power Ltd (APL) has finalized a 25-year power supply agreement with Bihar State Power Generation Company Ltd (BSPGCL) to deliver 2,400 megawatts (MW) of electricity to the state, as announced by the Adani Group on Saturday.
Per the agreement, the largest private thermal power generator in India will provide the stipulated power from a new ultra supercritical facility to be constructed at Pirpainti in Bhagalpur district of Bihar.
This development follows a Letter of Award (LoA) issued by BSPGCL to APL, representing North Bihar Power Distribution Company Ltd (NBPDCL) and South Bihar Power Distribution Company Ltd (SBPDCL) in August.
Adani Power secured the project by presenting the most competitive supply rate of Rs 6.075 per kWh.
According to APL, the company intends to invest around $3 billion to establish the new facility (800 MW X 3) and its necessary infrastructure following the Design, Build, Finance, Own, and Operate (DBFOO) model.
The coal supply for the power plant has been allocated in accordance with the SHAKTI Policy of the Indian government.
During the construction period, the project is expected to create approximately 10,000 to 12,000 jobs (both direct and indirect). Once operational, it will employ 3,000 individuals.
APL plans to have the plant operational within 60 months.
Previously, in a landmark implementation of the greenshoe option in a thermal power tender in India, APL was granted a total capacity of 1,600 MW by MP Power Management Company Limited (MPPMCL).
The company received an LoA from MPPMCL, awarding an additional 800 MW capacity under the ‘Greenshoe Option’.
Both units (800MW x 2) located in Anuppur district, Madhya Pradesh, are set to be commissioned within 60 months from the designated date.
APL stated that it will invest about Rs 21,000 crore for the construction of the plant and associated infrastructure.
The initiative is anticipated to create 9,000-10,000 jobs during the construction phase and 2,000 jobs once it becomes operational.
Point of View
This agreement between Adani Power and Bihar State Power Generation Company Ltd is a pivotal moment for India's energy sector. It not only showcases the private sector's role in energy generation but also highlights the commitment to sustainable development in Bihar. As the nation strives towards energy security, partnerships like these are essential for progress.
NationPress
14/09/2025
Frequently Asked Questions
What is the duration of the power supply agreement signed by Adani Power?
The power supply agreement signed by Adani Power is for a duration of 25 years.
How much power will Adani Power supply to Bihar?
Adani Power will supply 2,400 megawatts (MW) of electricity to Bihar.
What is the expected investment for the new power plant?
Adani Power plans to invest approximately $3 billion for the construction of the new power plant.
Where will the new power plant be located?
The new power plant will be established at Pirpainti in Bhagalpur district of Bihar.
How many jobs will the project create?
The project is expected to generate around 10,000 to 12,000 jobs during the construction phase and employ 3,000 people once operational.
