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Ahmedabad, India – On August 29, 2025, Adani Power Ltd., India’s largest private sector thermal power generator, announced that it has received a Letter of Award (LoA) from Bihar State Power Generation Company Limited (BSPGCL) for a huge 2,400 MW thermal power project.
This LoA finalises a 25-year long-term agreement for electricity procurement, building upon an earlier Letter of Intent issued on August 7, 2025.
The project, a greenfield ultra-supercritical plant, is slated for development at Pirpainti in Bihar’s Bhagalpur district, with Adani Power investing ~$3 billion in setting up the plant and related infrastructure. This development highlights Adani Power’s significant role in addressing India’s escalating energy demands.
Project Structure and Operational Details
The awarded project involves a 2,400 MW thermal power facility, comprising three 800 MW units, to be developed under a Design, Build, Finance, Own and Operate (DBFOO) model.
This comprehensive model means Adani Power will be responsible for the entire lifecycle of the plant, from its construction and financing to its long-term operation. The plant will source its fuel through an allocated coal linkage, a mechanism arranged by BSPGCL under Para B(IV) of the SHAKTI Policy.
The two state utilities in charge of power distribution in Bihar, North Bihar Power Distribution Company Ltd. (NBPDCL) & South Bihar Power Distribution Company Ltd. (SBPDCL), will receive the electricity produced. Following receipt of the LoA, the parties concerned are expected to formally execute a Power Supply Agreement (PSA).
Addressing India’s Growing Energy Needs
This development aligns strategically with India’s rapidly expanding energy requirements. Projections indicate that the nation’s peak power demand could surge from approximately 250 Gigawatts (GW) currently to 400 GW by 2031-32, potentially exceeding 700 GW by 2047.
This substantial growth is largely driven by rapid industrialisation, urbanisation, and a burgeoning population across the country. Thermal power, known for its inherent ability to provide large-scale, reliable, and continuous electricity, is seen as vital for India’s energy security, offering crucial base-load and grid balancing support to the national grid.
The government has stated plans to incorporate a extra 100 GW of thermal capacity by 2035 in response to this growing need.
Mr. S.B. Khyalia, Chief Executive Officer of Adani Power, stated that the upcoming Pirpainti project aims to set new benchmarks in operational excellence and sustainability, delivering affordable and uninterrupted power to Bihar, thereby stimulating industrial growth and bolstering the state’s economy and its people’s prosperity.
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