Largest Private Investment in Bihar’s Energy Sector to Benefit 130 Million People
- Lower Electricity Rates, Boost to Industries, and Investment Obstacles Cleared
- Construction Cost of ₹21,400 Crore: A Major Step Towards Energy Self-Reliance in Bihar
- Approved by the Central Government and Guided by CM Nitish Kumar’s Vision, Bihar to Become an Energy Hub
- Reduced Dependency on Other States for Power Supply
Patna, February 27: In a historic move to elevate electricity production in Bihar, the state government has approved the construction of a 3×800 MW (total 2400 MW) Greenfield Thermal Power Plant in Pirpainti, Bhagalpur. This power plant, with an investment of ₹21,400 crore, will be the largest private sector investment in the state’s history.
The new power plant is set to benefit 130 million residents of Bihar, leading to reduced electricity bills for households and giving a significant boost to local industries. Bihar State Power Generation Company Limited (BSPGCL) has been appointed as the nodal agency responsible for overseeing the project, including the tendering process and implementation. This massive investment is expected to redefine private investment dynamics and drive industrial growth in the state.
Visionary Leadership of CM Nitish Kumar
This ambitious project reflects Chief Minister Nitish Kumar’s forward-thinking energy policy, making Bihar an attractive destination for investors. Energy Minister Bijendra Prasad Yadav stated, “Under the leadership of the Chief Minister, Bihar has created a favorable environment for investors. This project will provide high-quality electricity at affordable rates and mark a significant milestone in the state’s industrialization.”
Key Highlights of the Project:
- Investment: ₹21,400 Crore (Largest Private Investment in Bihar)
- Capacity: 3×800 MW (Total 2400 MW)
- Location: Pirpainti, Bhagalpur
- Land Acquisition: 1020.60 Acres
- Nodal Agency: Bihar State Power Generation Company Limited
- Coal Linkage: Proposed from Coal India Limited under Shakti-V-(IV)
- Tender Process: Tariff-Based Competitive Bidding (TBCB)
- Tender Management: SBI Capital Markets Limited, Mumbai
Affordable and Uninterrupted Power Supply
The project will ensure continuous and affordable electricity for the people of Bihar, reducing the state’s dependency on other states for power. Currently, Bihar relies on external power sources, increasing overall costs. The new thermal power plant is expected to cut down on power purchase expenses, benefiting consumers with lower electricity rates.
Chief Secretary Amrit Lal Meena confirmed the decision, stating, “To ensure energy security for the state, the government has decided to establish a 2400 MW thermal power plant. Coal allocation for the project has already been secured.”
Energy Secretary Pankaj Kumar Pal mentioned that although a solar power project was initially planned for Pirpainti, technical surveys revealed that the proximity to coal sources and land conditions were more suitable for a thermal power plant.
Boost to Employment and Industrial Growth
The project is not only expected to lower electricity rates but also generate massive employment opportunities during its construction phase, benefiting thousands directly and indirectly. Additionally, it will encourage the establishment of industrial units, attracting more investments to the state.
Central Government Approval: Bihar on Path to Become an Energy Hub
The Ministry of Power, Government of India, has approved the tendering process under the Tariff Policy 2016. In the Union Budget 2024, an allocation of ₹21,400 crore was announced for this project. This initiative will play a crucial role in making Bihar energy self-reliant, paving the way for a new era of power supply and accelerating the state’s economic growth.
