LoI awarded to develop greenfield ultra-supercritical power plant at Pirpainti; to supply entire output to Bihar Utilities
Ahmedabad / Patna | Economy India: In a major development for India’s power sector and the industrial aspirations of Bihar, Adani Power Ltd., the country’s largest private thermal power producer, has received the Letter of Intent (LoI) from Bihar State Power Generation Company Ltd. (BSPGCL) to set up a 2,400 MW greenfield thermal power plant in Pirpainti, Bhagalpur.
The project, awarded under a competitive bidding process, will be implemented under the Design, Build, Finance, Own and Operate (DBFOO) model, with an estimated investment of ~$3 billion (approx. ₹25,000 crore). The power will be supplied to North Bihar Power Distribution Company Ltd. (NBPDCL) and South Bihar Power Distribution Company Ltd. (SBPDCL) for a period of 25 years.
Lowest Tariff Bidder at ₹6.075/unit
Adani Power emerged as the lowest bidder in a highly contested tender process, quoting a final tariff of ₹6.075 per unit (KWh). The tariff is seen as competitive considering the scale, location, and advanced technology of the plant.
The plant will consist of three units of 800 MW each, based on Ultra-supercritical technology, known for higher thermal efficiency and lower emissions compared to conventional coal-based power plants.
“We are pleased to have won the bid to develop and operate a 2,400 MW thermal power project in Bihar. This initiative is aligned with our commitment to support India’s energy security with cleaner and more efficient technologies,” said Mr. S.B. Khyalia, CEO, Adani Power.
Key Project Highlights
- Location: Pirpainti village, Bhagalpur district, Bihar
- Technology: 3×800 MW Ultra-supercritical thermal units
- Model: DBFOO – Design, Build, Finance, Own and Operate
- Tariff: ₹6.075 per unit (discovered through competitive bidding)
- Fuel Supply: Coal linkage under the SHAKTI Policy of the Government of India
- Timeline:
- First unit: Within 48 months of the appointed date
- Final unit: Within 60 months
Strategic Importance for Bihar
This is the largest power sector investment in Bihar in recent years. The project is expected to provide a significant boost to power availability, especially in the northern and southern regions of the state, which have been struggling with peak load demands.
The 2,274 MW net capacity to be supplied by Adani Power will play a key role in powering Bihar’s industrial clusters, urban growth centers, and agriculture-intensive zones.
Officials from Bihar State Power Holding Company Ltd. (BSPHCL) said the project is a “game-changer” for energy security in the state.
Employment Generation & Economic Boost
During the construction phase, the project is expected to create direct and indirect employment for 10,000–12,000 individuals, and provide long-term jobs for around 3,000 people post-commissioning.
The influx of capital and workforce will also boost ancillary sectors like logistics, construction materials, local vendors, and services, giving a strong push to regional economic development.
Greenfield Status & Regulatory Compliance
As a greenfield project, the plant will be built from scratch on virgin land, ensuring the adoption of the latest global technologies and environmental standards. Adani Power has committed to deploying advanced emission control mechanisms, complying fully with India’s updated environmental norms for coal-based generation.
The project will be subject to environmental clearance, land acquisition, and regulatory approvals, which are expected to move in parallel with the Letter of Award (LoA) and Power Supply Agreement (PSA) to be signed shortly with the state utilities.
Industry Reactions
Experts see this as a strong indicator of continued private sector confidence in India’s regulated power market. Despite a national focus on renewable energy, thermal power still accounts for over 55% of electricity generation and is considered essential for base-load supply and grid stability.
“Thermal power, especially ultra-supercritical, remains vital for India’s energy transition. This project sets a benchmark for competitive bidding and long-term PPA security,” said Rajiv Sharma, energy analyst at India Ratings.
A Pivotal Moment for Bihar’s Power Sector
With the formal award of this 2,400 MW project to Adani Power, Bihar takes a major step towards becoming power-sufficient. The project will not only help bridge the demand-supply gap, but also attract industries, improve living standards, and fuel the state’s economic ambitions.
As India continues to pursue energy security with efficiency and sustainability, such mega-projects will serve as the backbone of growth in aspirational states like Bihar.
(Economy India)
