The Bihar government has granted the Bhagalpur (Pirpainti) power project, generating 2,400 MW, to Adani Power Ltd. This decision followed a competitive bidding process where Adani Power offered a lower electricity tariff compared to other bidders like Torrent Power and JSW Energy. The state government initiated an open tender for the Bhagalpur project to address the projected increase in electricity demand, expected to reach over 17,000 MW by 2034-35.
Adani Power emerged as the preferred bidder with a tariff of Rs 6.075 per kWh, comprising a fixed charge of Rs 4.165 and a fuel charge of Rs 1.91 per unit. The government lauded this tariff as highly competitive, especially when compared to recent bids in Madhya Pradesh that had higher fixed charges. Other bidders included Torrent Power, Lalitput Power Generation Co Ltd, and JSW Energy.
The e-bidding process for the project followed standard government procedures to ensure transparency and equal opportunity for all participants. Adani Power’s planned investment of approximately Rs 30,000 crore in the project is expected to significantly boost industrial activity and create job opportunities in the region.
The project award has sparked political controversy in Bihar amid ongoing election campaigns. The Congress party has criticized the power purchase deal, alleging favoritism towards the Adani Group. However, sources have defended the competitive nature of the bidding process, highlighting the low tariff of Rs 6.075 per kWh offered by Adani Power.
The Bhagalpur project, initially conceptualized in 2012 by the Bihar State Power Generation Company Ltd (BSPGCL), was relaunched in 2024 after previous unsuccessful attempts to attract developers. The project site, owned by the state and leased to the developer under the Bihar Industrial Investment Promotion Policy 2025, will revert to the government after the project’s term.
Adani Power will be responsible for the development and operation of the power plant to ensure a reliable electricity supply to Bihar, aiming to stimulate industrial growth and employment opportunities in the state. Bihar’s historical lack of significant private investment and industrial projects, coupled with infrastructural challenges, have hindered economic development and led to workforce migration to other states.
Investments in infrastructure, such as the Bhagalpur power project, are crucial for economic growth and job creation. The project’s impact on industrial activity and employment prospects is expected to be substantial, aligning with the state’s efforts to attract private investment and foster economic development.