Adani’s ₹25,000 Crore Power Play: Bihar’s Biggest Energy Leap Begins

Image Source : Trade Brains

Overview: A Landmark Energy Push in Bihar

Adani Power Ltd has officially received the Letter of Intent (LoI) to develop a massive 2,400 MW ultra-supercritical thermal power plant in Pirpainti, Bhagalpur district, Bihar. This project, pegged at ₹25,000 crore (approximately $3 billion), marks the largest private sector investment in the state’s power infrastructure to date. With a competitive tariff bid of ₹6.08 per unit, Adani Power has emerged as the lowest bidder, securing the contract through a transparent bidding process led by the Bihar State Power Generation Company Limited (BSPGCL).

Key Highlights of the Announcement:

- Adani Power will build a 2,400 MW thermal power plant comprising three units of 800 MW each.
- The project will be developed on over 1,200 acres of land in Pirpainti, Bhagalpur.
- The company has committed an investment of ₹25,000 crore ($3 billion) for the plant.
- Adani Power won the bid with the lowest tariff of ₹6.08 per unit.
- The project is expected to create 10,000–12,000 jobs during the construction phase and 1,500 skilled jobs during operations.

Tariff and Bidding Details:

Adani Power’s winning bid includes:

- Fixed charge: ₹4.16 per unit
- Fuel and transportation charge: ₹1.92 per unit
- Total tariff: ₹6.08 per unit

This competitive pricing ensures affordability for the state’s power distribution companies while maintaining profitability for the developer. The electricity generated will primarily be supplied to South Bihar and North Bihar Power Distribution Companies, with surplus power available for open market sale.

Strategic Location and Infrastructure Readiness:

- The plant site is strategically located near the Ganga River, ensuring a reliable water source.
- Coal supply has been secured from the Rajmahal coal block in Jharkhand, with a 30-year allocation of 12 million tonnes.
- Rail and road connectivity has been ensured for efficient logistics and material transport.
- The land has been leased to Adani Group for 33 years at a nominal rate of ₹1 per year.

Technology and Environmental Impact:

The plant will use ultra-supercritical technology, which operates at higher temperatures and pressures than conventional coal-fired plants. This results in:

- Higher efficiency (up to 46% compared to 38–42% in older plants)
- Lower coal consumption per unit of electricity
- Reduced carbon emissions and environmental footprint

This aligns with India’s broader goals of cleaner and more efficient energy production while meeting rising demand.

Economic and Employment Impact:

- Construction phase: 10,000–12,000 jobs, including civil, mechanical, and electrical roles
- Operational phase: 1,500 skilled jobs in plant management, maintenance, and control systems
- Indirect employment: Thousands more through logistics, supply chain, and ancillary services

The project is expected to catalyze industrial growth in Bhagalpur and surrounding regions, improving local infrastructure and boosting economic activity.

What’s Next:

- Construction is expected to begin within the next few months, with completion targeted in five years.
- The plant will significantly contribute to Bihar’s projected energy capacity of 17,000 MW by 2035.
- Adani Power will work closely with state authorities to ensure timely execution and compliance with environmental and safety norms.

Conclusion:

Adani Power’s 2,400 MW thermal project in Bihar is a transformative step for the state’s energy landscape. With a massive investment, job creation, and cutting-edge technology, the initiative promises to address Bihar’s power deficit, stimulate economic growth, and set a benchmark for private sector participation in infrastructure development.

Sources: Fortune India, IndianWeb2, Patna Press, Headlines India, The Hindu