Adani Power will establish a 2,400 MW power plant in Bihar with an investment of 3 billion dollars. The company has signed a 25-year Power Supply Agreement (PSA) with BSPGCL. The plant is targeted to be operational within 60 months and will create employment for thousands of people.
BSPGCL: Adani Power plans to set up a state-of-the-art 2,400 MW power plant in Bihar with an investment of 3 billion dollars (approximately ₹26,482 crore). The company has signed a 25-year Power Supply Agreement (PSA) with Bihar State Power Generation Company Limited (BSPGCL). The project, to be developed in Pirpainti, aims to be operational within 60 months. Construction and operation will generate approximately 10,000-12,000 direct and indirect employment opportunities, while the operational phase will create jobs for 3,000 people.
Minimum Supply Rate of ₹6.075 per kWh
Adani Power has proposed a minimum supply rate of ₹6.075 per kilowatt-hour for this project. The company secured the project based on this rate. Adani Power stated that the company will invest approximately three billion US dollars in the construction of the new plant and its related infrastructure. This project will be developed under a design, build, finance, own, and operate model.
Target to Operationalize the Project in 60 Months
Adani Power aims to operationalize the project within 60 months, which is five years. Coal linkage for the power plant has been allocated under the Government of India's power policy. The construction phase of the project will create 10,000 to 12,000 direct and indirect employment opportunities. Furthermore, approximately 3,000 people will receive permanent employment once operations commence.
Beneficial for Power Distribution Companies in Bihar
This PPA (Power Purchase Agreement) is separate from the letter of acceptance issued by BSPGCL on behalf of North Bihar Power Distribution Company Limited (NBPDCL) and South Bihar Power Distribution Company Limited (SBPDCL) in August. Through this project, the state will have access to affordable and reliable electricity, benefiting both industries and domestic consumers.
Adani Power Shares Witness Surge
Following the announcement of the project, Adani Power shares closed with a significant surge on the BSE on Friday. The shares ended at ₹648.65, an increase of ₹24.20 or 3.88 percent. During trading hours, the shares ranged from an intraday low of ₹628.10 to an intraday high of ₹650.05. According to BSE data, Adani Power's 52-week high is ₹681.30 and the low is ₹430.85. The company's current market capitalization is approximately ₹2,50,180.34 crore.
Employment and Economic Impact Associated with the Project
This project by Adani Power will not only increase power supply but also boost employment opportunities in the state. During the construction phase, 10,000 to 12,000 people will find work, and upon commencement of operations, 3,000 individuals will secure permanent employment. This will not only strengthen the local economy but also accelerate economic activities in Bhagalpur and surrounding areas.
This project by Adani Power will significantly contribute to meeting Bihar's power demand. Keeping in mind the electricity needs of both industrial and domestic sectors in the state, this plant will ensure a reliable supply of energy. The electricity rate provided under the 25-year PSA will be stable, offering the state long-term energy security.
