Bihar Goes Big on Batteries: Prostarm Wins ₹159.8M Grid Storage Contract

Prostarm Info Systems Ltd, a leading energy storage solutions provider headquartered in Navi Mumbai, has officially received the final Letter of Award (LoA) from Bihar State Power Generation Company Ltd (BSPGCL) to set up a 30MW/120MWh standalone Battery Energy Storage System (BESS) across multiple grid substations in Bihar. The project, awarded under a tariff-based competitive bidding (TBCB) process, marks a significant milestone in India’s push toward grid modernization and renewable energy integration.

 

Project Overview

Rental Tariff: ₹4.44 lakh/MW/month

Annual Rental Value: ₹15.98 crore (~₹159.8 million)

 

This project is part of a broader initiative by BSPGCL to deploy 125MW/500MWh of BESS capacity across the state, aimed at improving grid reliability, managing peak load, and supporting renewable energy integration.

 

Financial Structure & Viability Support

The project will benefit from Viability Gap Funding (VGF), a government-backed financial mechanism designed to make infrastructure projects commercially viable. Under the scheme, developers are eligible for support of ₹27 lakh per MWh or 30% of the capital cost, whichever is lower.

 

Over the 12-year concession period, Prostarm is expected to generate approximately ₹192 crore in rental revenue, ensuring a stable financial return while contributing to Bihar’s energy resilience.

 

About Prostarm Info Systems Ltd

Founded in 2008, Prostarm has evolved from a battery and UPS reseller into a full-spectrum power solutions provider. The company specializes in:

Voltage stabilizers and isolation transformers

 

Prostarm operates two manufacturing facilities in Maharashtra and maintains a robust pan-India sales and service network. It serves diverse sectors including healthcare, BFSI, aviation, defense, IT, and education.

 

Since 2018, Prostarm has commissioned over 7.35MW of rooftop solar across 100+ sites and continues to provide O&M services to ensure optimal system performance.

 

Market Impact

Following the announcement, Prostarm’s stock saw a modest uptick of 2.39%, closing at ₹115.90. The company recently debuted on the stock exchange on June 3, 2025, with its IPO oversubscribed by 97.2 times and listing at a 19.05% premium.

 

In FY25, Prostarm reported a consolidated net profit of ₹23.31 crore, up 16.6% year-over-year, with revenues climbing to ₹257.87 crore.

 

Strategic Significance

This BESS deployment is a critical step in India’s energy transition. As renewable energy penetration increases, grid operators face challenges in balancing supply and demand. Battery storage systems like the one Prostarm will install are essential for:

The BOOT model ensures that the infrastructure is built and operated by the private sector, with eventual transfer to the government, aligning public and private interests.

 

Sources: Energetica India Magazine, Business Standard, T&D India, MoneyWorks4Me