Bihar’s Energy Future: Adani Power Bihar Thermal Plant
Newzdaddy Business Updates
Adani Power Ltd., India’s largest private sector thermal power generator, today said it has received a Letter of Award (LoA) for 25 Years long term procurement of electricity from Bihar State Power Generation Company Ltd. (BSPGCL), which it will supply from a 2,400 MW (800 MW × 3) greenfield ultra super critical plant to be set up at Pirpainti in Bhagalpur district of Bihar.
Ultra super-critical technology is more efficient than older coal plants and emits less carbon for the same output. That means more electricity with fewer emissions and less coal use, which is better for the environment and fuel costs. Many new projects in India are adopting this technology to enhance efficiency and reduce emissions.
BSPGCL awarded the LoA to APL on behalf of North Bihar Power Distribution Company Ltd. (NBPDCL) and South Bihar Power Distribution Company Ltd. (SBPDCL), the two state utilities. This would be followed by the signing of the Power Supply Agreement (PSA) between the entities.
BSPGCL is a government-owned power generation company in Bihar, and it often organises such competitive tenders to bring private players into power generation under long-term contracts. Once Adani receives the formal LoA, usually the next step is executing a detailed Power Supply Agreement (PSA), which locks in price, quantity, timelines, and other operational terms.
India’s power demand is expected to grow rapidly in the coming years, with peak demand rising from current ~250 GW to ~400 GW by 2031-32, and 700+ GW by 2047, propelled by rapid industrialisation, urbanisation, and a growing population. Thermal power, with its inherent ability to provide large-scale, reliable, and round-the-clock power, will continue to remain the backbone of our energy security, providing critical base-load and grid balancing support. To meet this ever-increasing power demand, the government has envisaged adding ~100 GW of thermal capacity by 2035.
According to India’s Central Electricity Authority, coal-based thermal power still dominates the country’s installed capacity, and continued investments are expected because renewable sources like solar and wind—while growing fast—cannot always provide uninterrupted power without storage or backup. So large, reliable thermal stations are still viewed as essential for grid stability and meeting peak demand, especially in states that are developing quickly but may not yet have complete renewable integration or storage infrastructure.
Adani Power, as India’s largest private sector thermal power producer, has consistently demonstrated the capability to deliver dependable capacity at scale, said Mr. S.B. Khyalia, Chief Executive Officer of Adani Power. “With our upcoming ultra-supercritical, high-efficiency Pirpainti project in Bihar, we are setting new benchmarks in operational excellence and sustainability. This plant will provide affordable and uninterrupted power to the people of Bihar, catalysing industrialisation, strengthening the state’s economy, and supporting the prosperity of its people. Through projects such as this, Adani Power remains committed to playing a leading role in securing India’s energy future,” he said.
Adani Power has a track record of building large thermal plants and has been expanding into renewable energy as well. Their strategy often includes combining conventional coal-based generation with newer technologies and efficient operational practices, which helps them offer competitive tariffs while maintaining reliability and meeting environmental norms.
Earlier, Adani Power had emerged winner in a tightly contested tariff-based competitive Bidding process called by BSPGCL, offering the lowest supply price of Rs 6.075 per kWh. The company will invest ~$3 billion in setting up the plant and the related infrastructure.
By quoting a low tariff of around ₹6.075 per unit, Adani was able to secure the contract over other bidders. This price reflects the company’s confidence in achieving economies of scale, modern technology efficiencies, and low financing costs. The investment of ~$3 billion (which is roughly ₹25,000 crore) is significant, making this one of the larger private investments in Bihar’s power sector. Such large investments often include not just the power-generation units, but also coal handling, ash disposal systems, water treatment, transmission lines, and infrastructure to link to the state grid. The project will generate direct and indirect employment of ~10,000 – 12,000 during the construction phase and ~3,000 once in operation.
Large thermal power plants often create substantial temporary (construction) employment: building the plant infrastructure, civil works, coal handling plants, installation of boilers and turbines, and transmission systems. After commissioning, long-term operational roles include plant operation, maintenance, monitoring, coal logistics, security, and administration. Local economies usually benefit from additional indirect jobs (supplies, catering, transport, housing) during the build phase as well.
