Adani Power Secures Bihar's 2,400 MW Bhagalpur Project with Lowest Bid of Rs 6.075 per kWh

Adani Power has secured the lowest bid status with a competitive tariff of Rs 6.075 per kWh for Bihar's significant power project.

New Delhi:

Following a competitive bidding process, the Bihar government has awarded the 2,400 MW Bhagalpur (Pirpainti) power project to Adani Power Ltd. The Ahmedabad-based company outbid three other competitors including Torrent Power and JSW Energy by offering the lowest electricity tariff.

The Bihar government initiated an open tender for the Bhagalpur project to address the state's growing electricity demands, which are projected to double to over 17,000 MW by 2034-35.

Among the four qualified participants, Adani Power emerged as the lowest bidder with a tariff of Rs 6.075 per kWh, comprising Rs 4.165 as fixed charge and Rs 1.91 as fuel charge per unit.

State officials described this tariff as "highly competitive," particularly noting that recent similar bids in Madhya Pradesh featured higher fixed charges.

The competitive landscape showed Torrent Power as the second lowest bidder at Rs 6.145 per unit, followed by Lalitput Power Generation Co Ltd at Rs 6.165 and JSW Energy at Rs 6.205 per unit.

Sources confirmed that the e-bidding process adhered to standard government procedures, ensuring transparency and equal opportunity for all participants.

Adani's anticipated investment of approximately Rs 30,000 crore in this power project is expected to significantly stimulate industrial activity and employment opportunities in the region.

The bidding-discovered tariff of Rs 6.075 per kWh represents exceptional value, particularly considering recent escalations in power generation input costs. For comparison, a recent 3,200 MW project in Madhya Pradesh saw higher fixed charges ranging from Rs 4.222 to Rs 4.298 per kWh, whereas the Bhagalpur project's fixed charge component is Rs 4.165.

The Bhagalpur project has a complex history, initially conceptualized in 2012 by the Bihar State Power Generation Company Ltd (BSPGCL) and relaunched in 2024 after multiple unsuccessful attempts to attract developers.

Officials clarified that the project land, acquired over a decade ago, remains fully owned by the state government and has been leased to the developer at nominal rent under the Bihar Industrial Investment Promotion Policy 2025 – a standard incentive offered to all investors. The land will return to government ownership after the project term concludes.

They emphasized that Adani Power received no special concessions and will be responsible for the development and operation of the plant to ensure reliable power supply to Bihar.

This project represents a significant development for Bihar, which has experienced minimal private investment over the past five decades, with virtually no new large industrial projects in the last five years while other states have seen rapid industrial growth.

Inadequate electrification and underdeveloped infrastructure have historically deterred private sector investment in the state, limiting job creation and forcing locals to seek employment opportunities elsewhere.

Data demonstrates a clear correlation between per capita GDP and per capita power consumption, highlighting electricity's role in driving economic growth.

According to housing and infrastructure expert V Suresh, every Rs 1 crore invested in infrastructure generates an estimated 200–250 man-years of employment across at least 70 trades, including unskilled, semi-skilled, and skilled positions.

With a population of 13.5 crore – approximately 10 percent of India's total – Bihar continues to experience large-scale worker migration to other states for low-paying jobs. Currently, only 5.7 percent of its workforce is employed in manufacturing, while nearly half (49.6 percent) depend on farming, forestry, and fishing for their livelihood.

Together with Uttar Pradesh, Bihar ranks among India's largest suppliers of labor, contributing an estimated 34 million workers to the national workforce.

Analysts emphasize that fresh infrastructure investment is crucial for reversing this trend. Adani Group's planned Rs 30,000 crore investment in the 2,400 MW Bhagalpur power project is expected to significantly boost industrial activity. The conglomerate's existing presence in power transmission, cement (with a committed Rs 1,600 crore investment), logistics, and airport operations positions it to contribute substantially to large-scale development in Bihar.

(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)