The Bihar government awarded the 2,400 MW Bhagalpur (Pirpainti) power project to Adani Power Ltd after a competitive bidding process in which the Ahmedabad-based company quoted a lower electricity tariff than three other bidders, including Torrent Power and JSW Energy, sources said.
The Bihar government had floated an open tender for the Bhagalpur project to meet the state's electricity demand, projected to double to over 17,000 MW by 2034-35.
Four qualified bidders participated in the tender, with Adani Power quoting the lowest electricity tariff of ₹6.075 per kWh (or per unit), sources with direct knowledge of the bidding process said.
Adani Power emerged as the lowest bidder (L1) with a tariff of ₹6.075 per kWh, comprising a fixed charge of ₹4.165 and a fuel charge of ₹1.91 per unit.
The state government described the tariff as "highly competitive", noting that similar recent bids in Madhya Pradesh quoted higher fixed charges.
Torrent Power was the second lowest bidder offering power at ₹6.145 per unit, while Lalitput Power Generation Co Ltd quoted ₹6.165 and JSW Energy ₹6.205 per unit.
The e-bidding process was conducted under standard government procedures to ensure transparency, sources said, adding that all bids were evaluated using the e-bidding procedure, ensuring full transparency and equal opportunity.
Adani's planned investment of around ₹30,000 crore in the power project is expected to play a key role in boosting industrial activity and creating jobs.
The award of the project has kicked up a political row in Bihar, which is in the midst of electioneering to elect a new government. The Congress has latched on to former union minister RK Singh's claim of a "scam" in the power purchase to attack the ruling BJP.
Congress leader KC Venugopal, on Friday, in a post on X, alleged that the Adani Group was receiving "red carpet treatment" in Bihar.
"The proposal for Bihar to purchase power at an inflated price of ₹6/unit is yet another example of a complete drain of wealth from the poor and middle classes into the coffers of Modi's cronies," he alleged.
Sources, however, said the ₹6.075 per kWh tariff discovered through bidding was highly competitive, especially given recent cost escalations in power generation inputs. It includes a fixed charge of ₹4.165 and a fuel charge of ₹1.91 per kWh.
A recent 3,200 MW bid in Madhya Pradesh discovered higher fixed charges of ₹4.222 to ₹4.298 per kWh (against fixed charges of ₹4.165 for the Bhagalpur project).
The Bihar tariff is among the lowest for comparable projects, according to sources.
The project, originally conceived in 2012 by the Bihar State Power Generation Company Ltd (BSPGCL), was relaunched in 2024 after several unsuccessful attempts to attract developers.
Officials said the land for the project, acquired over a decade ago, remains fully owned by the state and has been leased to the developer at a nominal rent under the Bihar Industrial Investment Promotion Policy 2025 - a standard incentive extended to all investors. The land will revert to the government after the project term.
They said Adani Power received no special concessions and will be responsible for developing and operating the plant to supply reliable power to Bihar.
The project is expected to boost industrial growth and employment in the region.
Bihar has seen little significant private investment over the past 50 years, with virtually no new large industrial projects in the last five years, even as other states have experienced rapid industrial growth.
Inadequate electrification and underdeveloped infrastructure have often been cited as a deterrent for private players to set up industries in the state, limiting job creation and forcing locals to migrate to other states in search of employment.
Data indicate a clear link between per capita GDP and per capita power consumption, highlighting the role of reliable electricity in driving economic growth.
Every Rs 1 crore invested in the infrastructure sector generates an estimated 200–250 man-years of employment across at least 70 trades, including unskilled, semi-skilled, and skilled workers, according to housing and infrastructure expert V Suresh.
Based on this calculation, Budget 2023's allocation of ₹10 lakh crore in capital expenditure is expected to create substantial employment. Experts note that infrastructure and building construction are critical for the growth of most other sectors of the economy.
With a population of 13.5 crore - about 10% of India's total - Bihar continues to see large-scale migration of workers to other states for low-paying jobs. Only 5.7% of its workforce is employed in manufacturing, while nearly half, or 49.6%, depend on farming, forestry, and fishing for livelihood.
Along with Uttar Pradesh, Bihar is among the country's largest suppliers of labour, contributing an estimated 34mn workers to the national workforce.
Analysts say fresh investment in infrastructure is critical for reversing this trend. Adani Group's planned investment of around ₹30,000 crore in the 2,400 MW Bhagalpur (Pirpainti) power project is expected to play a key role in boosting industrial activity. The conglomerate's existing presence in power transmission, cement (with a committed ₹1,600 crore investment), logistics, and airport operations positions it to contribute to large-scale development in the state, they added.
