Adani Power Limited (APL), India’s largest private sector thermal power producer, has announced a major milestone with the receipt of a Letter of Award (LoA) from Bihar State Power Generation Company Limited (BSPGCL) for setting up a 2,400 MW (3 x 800 MW) greenfield ultra-supercritical thermal power project in Pirpainti, Bhagalpur district, Bihar.

The award comes after Adani Power had earlier disclosed on August 7, 2025, that it had received a Letter of Intent (LoI) for the project. With the LoA officially in place, the project now moves forward towards the signing of a Power Supply Agreement (PSA) between Adani Power, North Bihar Power Distribution Company Ltd. (NBPDCL), and South Bihar Power Distribution Company Ltd. (SBPDCL).

Project Significance

The project, valued at ~$3 billion, will be developed under the Design, Build, Finance, Own and Operate (DBFOO) model with fuel sourced through a coal linkage allocated under the government’s SHAKTI policy. The long-term agreement ensures electricity supply for 25 years, making it one of the largest thermal power commitments in eastern India.

Adani Power secured this LoA through a Tariff Based Competitive Bidding (TBCB) process conducted by BSPGCL, where the company emerged as the lowest bidder with a supply tariff of Rs. 6.075 per kWh. This competitive pricing reflects Adani’s operational expertise and ability to deliver affordable and reliable electricity.

Power Demand and Energy Security

India’s energy requirement is on a steep rise. Current peak demand of ~250 GW is projected to reach 400 GW by FY 2031-32 and over 700 GW by 2047, driven by rapid industrialisation, urbanisation, and rising population. In this backdrop, thermal power continues to play a critical role, providing base-load electricity and grid balancing support essential for energy security.

The Pirpainti thermal power project will not only enhance Bihar’s power availability but will also support economic development, industrialisation, and job creation in the region.

Employment and Economic Benefits

During the construction phase, the project is expected to generate 10,000 to 12,000 direct and indirect jobs, creating massive employment opportunities in Bihar. Once operational, the plant will provide around 3,000 permanent jobs. This will not only improve livelihoods but also stimulate ancillary industries and services, boosting the state’s economy.

Leadership Remarks

Mr. S.B. Khyalia, Chief Executive Officer of Adani Power, stated:

“Adani Power, as India’s largest private sector thermal power producer, has consistently demonstrated the capability to deliver dependable capacity at scale. With our upcoming ultra-supercritical, high-efficiency Pirpainti project in Bihar, we are setting new benchmarks in operational excellence and sustainability. This plant will provide affordable and uninterrupted power to the people of Bihar, catalysing industrialisation, strengthening the state’s economy, and supporting the prosperity of its people. Through projects such as this, Adani Power remains committed to playing a leading role in securing India’s energy future.”

Adani Power – Company Overview

Adani Power Limited, part of the diversified Adani Group, has a total installed capacity of 18,110 MW across 12 power plants in Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Madhya Pradesh, Jharkhand, and Tamil Nadu. In addition, the company operates a 40 MW solar power plant in Gujarat, showcasing its diversification in energy generation.

With its track record of delivering large-scale, efficient, and reliable projects, Adani Power has emerged as a cornerstone of India’s energy landscape. The company’s strategy revolves around leveraging advanced technology, innovation, and sustainable practices to meet the growing demand for electricity while ensuring environmental compliance.

Strategic Outlook

The Pirpainti project is not just another capacity addition but a strategic investment in India’s power infrastructure. With Bihar’s growing electricity demand, the project will ensure that the state is adequately equipped to meet industrial and domestic requirements.

This development also aligns with the Government of India’s vision of adding ~100 GW of new thermal capacity by 2035 to balance the country’s energy mix. By investing heavily in ultra-supercritical technology, Adani Power is ensuring higher efficiency and lower emissions compared to conventional thermal projects.

Conclusion

The receipt of the LoA for the 2,400 MW greenfield ultra-supercritical thermal power project in Bihar marks a major milestone for Adani Power Limited. It reinforces the company’s role as a leader in India’s power sector and highlights its ability to undertake large-scale infrastructure projects that strengthen energy security, industrialisation, and economic growth.

For Bihar, this project is set to transform its energy landscape, ensuring long-term electricity supply, job creation, and economic upliftment. For India, it is another step toward achieving energy reliability in the face of growing demand.

The project demonstrates Adani Power’s continuing commitment to affordable, reliable, and sustainable energy, positioning it as a key player in shaping the future of India’s power sector.

The Upcoming IPOs in this week and coming weeks are Goel Construction Company, Amanta Healthcare, Rachit Paints, Abril Paper Tech, Sneha Organics, Sugs Lloyd, .

The Current active IPO are Oval Projects, Anlon Healthcare, NIS Management, Sattva Engineering Construction, Globtier Infotech, Current Infraprojects, Vikran Engineering, .

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.