In a press release dated September 13, 2025, Adani Power Ltd. (APL) issued from Ahmedabad said that it has signed a 25-year Power Supply Agreement (PSA) with Bihar State Power Generation Company Ltd. (BSPGCL) for supply of 2,400 MW of power from a greenfield ultra super critical plant to be set up at Pirpainti in Bhagalpur district of Bihar. APL is India's largest private sector thermal power generator.
This was in furtherance to the LoA awarded by BSPGCL to APL, on behalf of North Bihar Power Distribution Company Ltd. (NBPDCL) and South Bihar Power Distribution Company Ltd. (SBPDCL) in August, 2025. Adani Power won the project by offering the lowest supply rate at Rs 6.075 per KWh. The company plans to invest approximately $3 billion to build the new plant (800 MW X 3) and its supporting infrastructure under the Design, Build, Finance, Own, and Operate (DBFOO) model.
APL won the project through a competitive bidding process conducted under Section 63 of the Electricity Act, 2003 through Tariff Based Competitive Bidding (TBCB). Section 63 deals with ''Determination of tariff by bidding process''. It reads: ''Notwithstanding anything contained in section 62, the Appropriate Commission shall adopt the tariff if such tariff has been determined through transparent process of bidding in accordance with the guidelines issued by the Central Government.'' Section 62 deals with "Determination of tariff" in general.
The state government claims that the land was transferred on lease at Re 1 per year to Bihar State Power Generation Company (BSPGCL) in 2022, before the most recent bidding process that Adani won. The land rate, was part of the selection process to reduce power generation costs, and land ownership remains entirely with the Energy Department of the Bihar government. This is not an unique arrangement for Adani.
Coincidentally, in August 2025, the Bihar cabinet had approved the “Bihar Industrial Investment Promotion Package 2025”, offering land at a token rate of Re 1 to qualifying investors. Under this policy, investors making Rs 100 crore investment and creating 1,000 jobs get 10 acres free land, those investing Rs 1,000 crore get up to 25 acres free land, while fortune 500 companies get 10 acres free land. Other investors are also eligible to get 50% discount on BIADA land rates, under the policy. This package is available to all qualifying investors until March 31, 2026.
The coal linkage for the power plant has been allocated under the SHAKTI Policy of Government of India. The project will generate direct and indirect employment of ~10,000 – 12,000 during the construction phase and ~3,000 once in operation.
The company aims to fully commission the plant in 60 months, stated the release.
Earlier, on September 1, 2025, it was reported "Adani Power secures letter of award (LoA) for 2,400MW thermal plant in Bihar, India". It was claimed that the project is expected to create between 10,000 and 12,000 direct and indirect jobs during the construction phase.
India-based private sector thermal power generator Adani Power secured a letter of award (LoA) to set up a 2,400MW greenfield ultra-supercritical plant in Pirpainti, in the Bhagalpur district of Bihar.
The company claims that it will supply electricity generated by the plant under a 25-year contract signed with the Bihar State Power Generation Company Limited (BSPGCL).
This contract was made on behalf of the two state utilities, the South Bihar Power Distribution Company Limited (SBPDCL) and the North Bihar Power Distribution Company Limited (NBPDCL).
Adani Power received a letter of intent (LoI) from BSPGCL in August 2025.
The power demand of the country is anticipated to surge in the upcoming years, with peak requirement expected to climb from the current approximately 250GW to around 400GW by 2031-32 and more than 700GW by 2047.
Adani Power had won the project in a tariff-based competitive bidding process, claiming that it is offering the lowest supply price of Rs6.075 ($0.069) per kilowatt hour.
The state government claims that while renewable energy costs Rs 3-3.50 per unit, its availability varies significantly based on weather and time of day. Renewable energy has a Capacity Utilisation Factor (CUF) of only 22% for solar and 32% for wind. Thermal power is always available, which is why thermal power rates are higher than renewable energy. This is a natural outcome of regulatory processes.
This claim is intriguing given the fact that the entire world is dumping thermal power plant and shifting to renewal energy, Bihar is the new dumping ground for thermal plants. A Total four big thermal plants are proposed to set up in the Ganga river basin. The air pollution and water pollution load caused by these plants will have environmental health consequences.
Notably, a previous proposal for a solar plant in Pirpainti, Bhagalpur was replaced with the coal plant proposal after a technical survey found that coal was a “more viable option due to the availability of coal and favorable land conditions.” The Bihar State Power Generation Company was slated to oversee construction of the coal project.
The company plans to invest $3 billion in establishing the plant and associated infrastructure.
It claimed that the project is expected to create between 10,000 and 12,000 direct and indirect jobs during the construction phase and 3,000 jobs once operational.
The project site will cover 374 hectares, including 67 hectares for the plant itself, 75 hectares for a reservoir, 57 hectares for a coal and railway yard, 46 hectares for an ash dyke, five hectares for a township, and 105 hectares reserved for future expansion.
The state government has claimed that although 10,055 trees were counted during land acquisition (mostly planted after 2010-11), only trees within the power plant area (300 acres) and coal handling area will be cut. A green belt will be developed under compulsory afforestation on 100 acres.
Adani’s land acquisition for power projects has faced opposition in other states too. In Jharkhand’s Godda, farmers have alleged forced land acquisition, intimidation, and police brutality for Adani’s 1600 MW thermal power project. The Jharkhand government formed a high-level panel in August 2025 to probe the land acquisition for this project.
The Pirpainti project involved acquiring 988.335 acres of rayati (private) land across five revenue villages, affecting 919 landowners. The compensation varied because different plots had different numbers of trees and structures. Tree valuation was done by the District Forest Division Officer, Bhagalpur, while structure valuation was conducted by the Executive Engineer, Building Division, Bhagalpur.
Notably, some landowners received higher 20% final payments than their initial 80% payments due to different land acquisition laws being applied — the initial 80% was calculated under the 1894 Land Acquisition Act (as amended in 1984), while the final 20% was calculated under the more generous 2013 Land Acquisition Act. The land acquisition followed the “one project, one rate” principle as per a Revenue Department directive dated May 18, 2010, but different land types (agricultural vs barren) have different rates within the same project.
The supporters of the project claim that “Bihar government is leasing, not selling, the land”.
Long before the arrival of APL on the scene, the project was proposed by the Pirpainti Bijlee Company, with power to be sold to the Bihar State Electricity Board (BSEB). BSEB stated that the project would require 6.25 million tonnes of coal, an allocation which was sought in 2006. BSEB stated that 1171 acres was identified for acquisition through the Bihar Industrial Development Authority (BIADA) and that the Water Resources Department gave consent for 55 Cusecs to be allocated from the Ganga river for the project.
In August 2025, Adani Power received a letter of intent from the Bihar state government to supply power from the Pirpainti Thermal Power Station to North Bihar Power Distribution Company Ltd. (NBPDCL) and South Bihar Power Distribution Company Ltd. (SBPDCL). In a statement, APL said its winning bid included a final power supply price of Rs 6.075 per kilowatt-hour (6.9 US cents per kWh). The company planned to build the proposed 3 x 800 MW ultra-supercritical plant under a Design, Build, Finance, Own, and Operate (DBFOO) model, and expected to commission the first unit within 48 months of finalizing the contract. The entire US$3 billion plant was slated to be completed within five years.
Chronology
September 16, 2025: Adani Power Ltd. has sought Terms of Reference (ToR) approval for setting up a coal-based Ultra Super Critical Thermal Power Plant at Pirpainti, Bhagalpur, Bihar. Before starting any large project, the company is required to conduct an Environmental Impact Assessment (EIA).
September 13, 2025: Adani Power Ltd. (APL) issued a release from Ahmedabad stating that it has signed a 25-year Power Supply Agreement (PSA) with Bihar State Power Generation Company Ltd. (BSPGCL) for supply of 2,400 MW of power from a greenfield ultra super critical plant to be set up at Pirpainti in Bhagalpur district of Bihar.
September 2025: The Bihar Congress organised a protest march from its Patna office at Sadakat Ashram to Dr. Rajendra Prasad’s memorial at Bans Ghat, led by state congress chief Rajesh Ram against the Bihar government’s decision to lease 1,050 acres of land in Bhagalpur to the Adani Group at a token rate of Rs 1 per year for 33 years, for setting up a thermal power plant at Pirpainti. It has been alleged that the land deal, along with the cutting of 10 lakh trees, amounts to “mortgaging Bihar’s future to Adani” and constitutes a “major loot” of Bihar’s resources. The party claimed fertile agricultural land has been declared "barren". The fertile agricultural land has been reclassified as "barren" to facilitate the transfer. Bihar residents will have to buy electricity at Rs 6.075 per unit, compared with lower rates in other states like Maharashtra and Uttar Pradesh.
September 5-11, 2025:Union Ministry of Environment, Forest and Climate Change is reviewed the environmental clearance application of APL from September 5 to 11. On September 11, 2025, the ministry sought detailed inputs from related departments,
marking progress towards approval of the 2,400 MW coal-based plant,
which will be built across Sirmatpur and adjoining villages.
September 3, 2025: APL applied for environmental clearance on September 3, 2025.
September 1, 2025: Adani Power secured letter of award (LoA) for 2,400MW thermal plant in Pirpainti, Bhagalpur, Bihar.
August, 2025: Letter of Award granted by Bihar State Power Generation Company Ltd. (BSPGCL) to APL, on behalf of North Bihar Power Distribution Company Ltd. (NBPDCL) and South Bihar Power Distribution Company Ltd. (SBPDCL).
In August 2025, the Bihar cabinet approved the “Bihar Industrial Investment Promotion Package 2025”, offering land at a token rate of Re 1 to qualifying investors. Under this policy, investors making Rs 100 crore investment and creating 1,000 jobs get 10 acres free land, those investing Rs 1,000 crore get up to 25 acres free land, while fortune 500 companies get 10 acres free land. Other investors are also eligible to get 50% discount on BIADA land rates, under the policy. This package is available to all qualifying investors until March 31, 2026.
June 2025: Four private firms—Adani Power, JSW Energy, Torrent Power, and Bajaj Group’s Lalitpur Power expressed interest in establishing the proposed power station at Pirpainti, Bhagalpur under a Tariff-based Competitive Bidding (TBCB) process. It would be Bihar’s first private investment in the power sector.
March 2025: State government approved the construction of the proposed 2,400 MW coal plant in Pirpainti, Bhagapur.
January 2025: Bihar government sought bids for the proposed power station by March 2025.
February 2024: Bihar government revived the coal plant proposal at Pirpainti. Land was already acquired for the project, which would have a capacity of 2,400 MW (3 x 800 MW).
September 30, 2020: Supreme Court referred to the Fifth Schedule to the Constitution of India, which deals with administration and control of Scheduled Areas and Scheduled Tribes, it said that six of the nine coal blocks in Jharkhand - Chakla, Chitarpur, North Dhadu, Rajhara North, Seregarha and Urma Paharitola -- which have been put up for auction fall within the Schedule Fifth areas. Supreme Court observed that if an area falls under eco sensitive zone then neither the Centre nor the state government will have the right to mine it.
2018: Susanta Singh, the Odisha’s energy minister had requested R.K. Singh, the then union power minister to cancel power purchase agreement (PPA) between the state and National Thermal Power Company (NTPC) for the 1,320-MW Pirpainti Thermal Power Station, on the back of surplus generation capacity in the state.
January 2016: In January 2016 it was reported the MoU for the plant signed among Bihar State Power Generation Company, National Hydro Power Corporation (NHPC) and Pirpainti Bijlee Company for development of the 1,320 MW Pirpainti power station was all set to expire.
January 2015: Farmers whose plots were acquired for the proposed power plant two years ago started protesting against the project over non-payment of compensation.
February 2014: A memorandum of understanding (MoU) was signed amongst Bihar State Power Generation Company, National Hydro Power Corporation (NHPC) and Pirpainti Bijlee Company for development of the 1,320 MW Pirpainti power station. NHPC and Bihar State Power Generation Company were to develop the project through the joint venture Pirpainti Bijlee Company. The power station was originally scheduled to be commissioned in 2015-16, but faced opposition from the local residents.
April 12, 2013: Urma Paharitola coal block, Jharkhand allocated to Jharkhand State Electricity Board (JSEB) and Bihar State Mineral Development Corporation April 12, 2013.
May 26, 2011: Adani Power Limited (APL) submitted a Rs 7,000 crore proposal to the Bihar government for setting up a 1,320 (610x2) MW thermal power station in the state and mining coal from the Urma Pahari coal mines, Dumka, Jharkhand which is in Scheduled Areas, to feed the project. Gautam Adani, Chairman, APL submitted this proposal at a meeting with Bihar Chief Minister Nitish Kumar at the state secretariat on May 26, 2011. Union government allotted the Urma Pahari coal block to Bihar to meet its requirement of coal for thermal power stations.
Ganga Power & Natural Resources (GPNR) Ltd signed a memorandum of understanding (MoU) with Bihar State Electricity Board (BSEB) for setting up a super critical thermal power project (2×660 MW) at Pirpainty in Bhagalpur district, to begin operation in 2014.
July 2010: Bihar State Electricity Board (BSEB) claimed that the environmental impact assessment report was completed and public hearing was held in July 2010.
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