Adani Power has received a Letter of Intent (LoI) from Bihar State Power Generation Company Ltd. (BSPGCL) to develop and operate a 2,400 MW greenfield thermal power plant at Pirpainti in Bhagalpur district, Bihar. The company announced on Thursday that the project will supply 2,274 MW of electricity to the state’s power distribution companies under a long-term agreement.

The Adani group subsidiary emerged as the lowest bidder in a competitive tender process, quoting a final tariff of ₹6.075 per kilowatt-hour. The power will be supplied to North Bihar Power Distribution Company Ltd. (NBPDCL) and South Bihar Power Distribution Company Ltd. (SBPDCL).

Adani Power will set up the plant under the Design, Build, Finance, Own and Operate (DBFOO) model. The project will consist of three units of 800 MW each, based on ultra-supercritical technology. According to the company, the first unit is expected to be commissioned within 4 years of the appointed date, and the full capacity within 5 years.

"We are pleased to have won the bid to develop and operate a 2,400 MW thermal power project in Bihar. We will set up a new greenfield plant with an investment of ~$3 billion, which is expected to further aid industrialization in the state. Our plant will be an advanced, low-emission Ultra-supercritical one, and will supply dependable, competitively priced, and high-quality power to the state," said S.B. Khyalia, CEO, Adani Power, in a statement.

The estimated investment for the project is around $3 billion (₹26,309 crore). Fuel supply will be secured through a coal linkage under the Government of India’s SHAKTI policy.

The proposed plant is expected to create an estimated 10,000 to 12,000 direct and indirect jobs during the construction phase, and about 3,000 jobs once operational. The company expects to receive a formal Letter of Award (LoA) in due course, following which a Power Supply Agreement (PSA) will be signed with the state utilities.