Billionaire Gautam Adani Secures Contract forconstruction of $3 Billion Power Plant Initiative in Bihar, India
Adani Power, a subsidiary of the Ahmedabad-based Adani Group, has won a bid to build three thermal power plants in Bihar, India. The company plans to invest approximately $3 billion in a new greenfield plant in Pirpainti, Bhagalpur district, Bihar.
The power project, with a combined capacity of 2,400 megawatts, will consist of a greenfield 3x800 MW Ultra-supercritical coal-fired power plant developed under a Design, Build, Finance, Own, and Operate (DBFOO) model. Adani Power has received a Letter of Intent (LoI) from Bihar State Power Generation Company Ltd. (BSPGCL) and will supply 2,274 MW of power to North Bihar Power Distribution Company Ltd. and South Bihar Power Distribution Company Ltd. at a competitive final supply price of ₹6.075 per KWh.
The Bihar State Power Generation Company selected Adani Power after it offered the lowest electricity rate during a bidding exercise. The power project is anticipated to generate up to 12,000 jobs during construction and about 3,000 jobs once operational.
The first unit of the plant is expected to become operational within four years, while the final (third) unit is to be commissioned within six years from the appointed date. Fuel will be sourced under the central government’s SHAKTI coal allocation policy.
Gautam Adani, the chairman of Adani Group, has an estimated net worth of $60 billion and is the second-wealthiest person in India. The Adani Group has diversified interests in various sectors including airports, cement manufacturing, edible oils, energy, logistics, media, mining, ports, power, and real estate.
The new power plants are intended to aid industrialization in the state of Bihar, which holds the fourth-largest share of parliamentary seats. However, the potential political impact on Prime Minister Narendra Modi's coalition government is not explicitly clear from the available information.
The Adani Group is responsible for building the three thermal power plants in Bihar, marking a significant investment in the region's infrastructure and industrial development. The bidding exercise for the power plants was tightly contested, underscoring Adani Power's competitive edge in the energy sector.
This move comes after Adani resumed investment plans following a U.S. probe last year that slowed his expansion binge. The successful completion of these power plants will undoubtedly contribute to the government's agenda for regional growth and energy security.
[1] BSE [2] ET [3] Business Standard [4] Times of India [5] Hindustan Times
- Despite the political implications that remain unclear, Gautam Adani's Adani Group, with interests in various sectors including power, has emerged victorious in the bidding process for the construction of three thermal power plants in Bihar, India.
- The Adani Group, through its power subsidiary, Adani Power, is expected to generate up to 15,000 jobs (12,000 during construction and about 3,000 once operational) and invest approximately $3 billion in Bihar's infrastructure and industrial development, as they work towards building the new power plants.
