BSPGCL Signs MoUs for ₹13,000 Cr Pumped Storage Power Projects in Bihar

The Bihar State Power Generation Company Ltd (BSPGCL) on Tuesday signed two MoUs with private developers for setting up pumped storage power projects of a combined 2,120 MW capacity in Nawada district, involving a proposed capital investment of Rs 13,000 crore.

The MoUs were signed in the presence of Chief Minister Nitish Kumar and Energy Minister Bijendra Prasad Yadav, along with senior ministers and top bureaucrats of the state government.

The projects are being taken up under the Bihar Pump Storage Project Promotion Policy, 2025, as part of the state’s strategy to strengthen energy security, add large-scale storage capacity and facilitate greater integration of renewable energy, a statement said.

Under the agreements, GreenCo Energies Pvt Ltd will develop a 1,200 MW pumped storage project at Ekamba village with an estimated investment of RS 7,800 crore, while Sun Petrochemicals Pvt Ltd will set up a 920 MW project at Gosaitari village at a cost of about Rs 5,200 crore.

Both projects are proposed in the hilly terrain of Nawada district, which the state government said is suitable for pumped storage due to natural elevation differences.

The energy storage capacity of the GreenCo project has been estimated at 7,308 megawatt hours (MWh), while the Sun Petrochemicals project is planned with a storage capacity of 6,973 MWh, taking the combined energy storage capacity to 14,281 MWh.

According to the state government, the projects will be developed using off-stream, closed-loop pumped storage systems. Water will be stored during the monsoon period and released during peak demand hours for power generation, a mechanism aimed at improving grid stability and balancing intermittent renewable sources such as solar and wind.

The government expects the Rs 13,000 crore investment to generate around 8,000 jobs during the construction phase and significantly enhance Bihar’s capability in peak demand management and renewable energy integration, which could help moderate power procurement costs over the long term.

“These projects will enhance the state’s energy security and self-reliance,” Chief Minister Nitish Kumar said, adding that pumped storage would play a crucial role in stabilising the grid as renewable energy capacity expands.

Energy Minister Bijendra Prasad Yadav said the projects demonstrated the state’s commitment to clean and reliable power supply.

“This government is committed to providing uninterrupted and clean electricity to the people and industries of Bihar. There has been no electricity consumption problem in the state for the past five years,” he said.

Appealing to investors, Yadav said Bihar offered a conducive environment for industrial and infrastructure investment.

“These two projects will not only help meet the state’s growing electricity needs but will also be an important step towards achieving India’s net zero emission target of 2070,” he added.

The state power utility will facilitate land allocation, clearances and other administrative support for the projects. While the government indicated that project implementation would begin within a short timeframe following policy notification, officials said completion timelines would be subject to statutory approvals and construction progress.

The MoUs mark the first major investment agreements signed by the Bihar government following the rollout of the Pump Storage Project Promotion Policy, 2025, just five months before, and form part of the state’s broader push to attract large-scale capital expenditure in the power and renewable energy sectors.