Adani Power Emerges As Lowest Bidder
The Bihar government has awarded the 2,400 MW Bhagalpur (Pirpainti) power project to Adani Power Ltd following a highly competitive bidding process. Adani emerged as the lowest bidder, quoting a tariff of Rs 6.075 per kWh, which undercut three other contenders, including Torrent Power and JSW Energy. The tender was floated to meet Bihar’s growing electricity demand, projected to exceed 17,000 MW by 2034–35. Sources said the bid, which includes both fixed and fuel charges, was evaluated through a transparent e-bidding process, ensuring fair competition. This award marks a significant step toward boosting power supply and industrial growth in the state.
Bidding Details
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Number of bidders: Four qualified companies participated in the tender.
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Adani Power tariff: Rs 6.075 per kWh, consisting of:
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Fixed charge: Rs 4.165 per kWh
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Fuel charge: Rs 1.91 per kWh
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Other bidders’ tariffs:
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Torrent Power: Rs 6.145 per kWh (second lowest)
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Lalitput Power Generation Co Ltd: Rs 6.165 per kWh
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JSW Energy: Rs 6.205 per kWh
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Bidding process: Conducted through e-bidding following standard government procedures to ensure transparency and equal opportunity.
Investment and Industrial Impact
Adani plans to invest around Rs 30,000 crore in the project. Officials said the project is expected to boost industrial activity, create jobs, and provide reliable electricity to Bihar, supporting economic growth and infrastructure development in the state.
Political Controversy
The award of the project sparked a political row in Bihar, amid electioneering. Congress leader KC Venugopal alleged that the Adani Group was receiving “red carpet treatment” and accused the government of inflating power prices. Sources countered that the Rs 6.075 per kWh tariff is highly competitive, noting higher fixed charges in comparable projects in Madhya Pradesh.
Historical Context and Project Relaunch
Originally conceived in 2012 by Bihar State Power Generation Company Ltd (BSPGCL), the project was relaunched in 2024 after multiple failed attempts to attract developers. The land remains state-owned and is leased under the Bihar Industrial Investment Promotion Policy 2025, reverting to the government after the project term.
Bihar’s Industrial and Employment Scenario
Bihar has seen limited private investment over the past 50 years, with minimal new large-scale industrial projects in recent years. Low electrification and underdeveloped infrastructure have hindered job creation, causing large-scale migration of workers to other states. Only 5.7% of the workforce is employed in manufacturing, while nearly 50% depend on farming, forestry, and fishing.
Role of Power in Economic Growth
Data shows a strong correlation between per capita GDP and per capita power consumption, highlighting reliable electricity as a key driver of growth. Every Rs 1 crore invested in infrastructure generates approximately 200–250 man-years of employment across 70 trades.
Adani Group’s Broader Development Role
Adani’s investment in the Bhagalpur project complements its presence in power transmission, cement, logistics, and airports, positioning the conglomerate to contribute to large-scale development and industrial growth in Bihar.
(With Inputs From Press Release)
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