Patna: Bihar has taken a major step towards bolstering its energy infrastructure with the approval of a 2,400MW greenfield thermal power plant in Pirpainti, Bhagalpur district. The project, set to be the largest private sector investment in the state’s history, will require an estimated Rs 21,400 crore and is expected to transform Bihar’s energy landscape.
The proposed plant, with a capacity of 3x800MW, is intended to provide a stable and affordable electricity supply to the state’s 13 crore residents while fostering industrial growth. The Bihar State Power Generation Company Limited (BSPGCL) has been designated as the nodal agency, overseeing the tender process and project execution.
A Landmark Initiative for Bihar
The power plant is a key component of Chief Minister Nitish Kumar’s energy reforms aimed at reducing Bihar’s reliance on external power sources. Energy Minister Bijendra Prasad Yadav highlighted 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 project will be developed under a tariff-based competitive bidding (TBCB) model, managed by SBI Capital Markets Limited, Mumbai. The government has already acquired 1,020.60 acres of land for the plant, and coal linkage has been secured under Coal India Limited’s Shakti-V-(IV) policy.
Strategic Shift in Bihar’s Power Supply
Bihar currently depends on external sources to meet its electricity demand, a challenge that has hindered its economic growth. Chief Secretary Amrit Lal Meena emphasised the long-term benefits of the project, stating, “To ensure Bihar’s energy security, the government has decided to establish this 2,400MW thermal power plant, with coal allocation already secured.”
Initially, a solar power project was considered for Pirpainti, but a technical survey determined that a thermal plant was a more viable option given the region’s coal availability and land conditions. Energy Secretary Pankaj Kumar Pal reaffirmed that the decision aligns with Bihar’s long-term energy strategy.
Economic and Industrial Impact
Beyond strengthening Bihar’s power infrastructure, the project is set to create thousands of jobs, both directly and indirectly, during the construction phase and operational period. The availability of affordable electricity is expected to attract further industrial investment, providing a much-needed boost to the state’s economic landscape.
The Union Ministry of Power has endorsed the tendering process under the Tariff Policy 2016, with the Rs 21,400 crore allocation announced in the Union Budget 2024. The Centre’s commitment to Bihar’s energy sector reflects the growing recognition of the state’s industrial potential and its need for energy self-sufficiency.
