Bihar Approves $2.6B Thermal Plant to Boost Energy Security

03 Mar 2025 CW Team

The Bihar State Power Generation Company Limited (BSPGCL) has been designated as the nodal agency to oversee the tender process and execution. SBI Capital Markets Limited, Mumbai, will manage the project under a tariff-based competitive bidding (TBCB) model. The state has already acquired 1,020.60 acres for the plant, with coal linkage secured under Coal India Limited’s Shakti-V-(IV) policy.

A Strategic Shift in Bihar’s Energy Policy Currently, Bihar relies on external sources for a significant portion of its electricity, a factor that has limited economic expansion. The new project is expected to change that.

“To ensure Bihar’s energy security, the government has decided to establish this 2,400MW thermal power plant, with coal allocation already secured,” said Chief Secretary Amrit Lal Meena.

A solar power project was initially considered for Pirpainti, but a technical survey determined that a thermal plant would be more viable given the region’s coal reserves and land conditions. Energy Secretary Pankaj Kumar Pal confirmed that the decision aligns with Bihar’s long-term energy strategy.

Economic and Industrial Impact The project is expected to create thousands of jobs during construction and operation, while also attracting new industries by ensuring affordable electricity.

Energy Minister Bijendra Prasad Yadav underscored the project’s significance, stating, “Under the Chief Minister’s leadership, Bihar has created an attractive investment climate. This power plant will not only ensure reliable electricity but also contribute to reducing power costs, accelerating industrial development in the state.”

The Union Ministry of Power has endorsed the tendering process under the Tariff Policy 2016, with the project’s funding announced in the Union Budget 2024. The Centre’s backing reflects growing recognition of Bihar’s industrial potential and the need for energy self-sufficiency.

With construction set to begin soon, the Pirpainti power plant marks a major milestone in Bihar’s energy transformation.

Bihar has approved a landmark $2.6 billion greenfield thermal power project in Pirpainti, Bhagalpur district, marking the state’s largest private sector investment. The 2,400MW plant, featuring three 800MW units, aims to provide a stable electricity supply to Bihar’s 130 million residents and drive industrial growth. The Bihar State Power Generation Company Limited (BSPGCL) has been designated as the nodal agency to oversee the tender process and execution. SBI Capital Markets Limited, Mumbai, will manage the project under a tariff-based competitive bidding (TBCB) model. The state has already acquired 1,020.60 acres for the plant, with coal linkage secured under Coal India Limited’s Shakti-V-(IV) policy. A Strategic Shift in Bihar’s Energy Policy Currently, Bihar relies on external sources for a significant portion of its electricity, a factor that has limited economic expansion. The new project is expected to change that. “To ensure Bihar’s energy security, the government has decided to establish this 2,400MW thermal power plant, with coal allocation already secured,” said Chief Secretary Amrit Lal Meena. A solar power project was initially considered for Pirpainti, but a technical survey determined that a thermal plant would be more viable given the region’s coal reserves and land conditions. Energy Secretary Pankaj Kumar Pal confirmed that the decision aligns with Bihar’s long-term energy strategy. Economic and Industrial Impact The project is expected to create thousands of jobs during construction and operation, while also attracting new industries by ensuring affordable electricity. Energy Minister Bijendra Prasad Yadav underscored the project’s significance, stating, “Under the Chief Minister’s leadership, Bihar has created an attractive investment climate. This power plant will not only ensure reliable electricity but also contribute to reducing power costs, accelerating industrial development in the state.” The Union Ministry of Power has endorsed the tendering process under the Tariff Policy 2016, with the project’s funding announced in the Union Budget 2024. The Centre’s backing reflects growing recognition of Bihar’s industrial potential and the need for energy self-sufficiency. With construction set to begin soon, the Pirpainti power plant marks a major milestone in Bihar’s energy transformation.

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