Adani Power Ltd (APL), India’s largest private-sector thermal power producer, on Saturday said it has signed a 25-year power supply agreement (PSA) with Bihar State Power Generation Company Ltd (BSPGCL) to supply 2,400 MW of electricity from a greenfield ultra-supercritical plant to be set up at Pirpainti in Bhagalpur district.

The agreement follows a Letter of Award (LoA) issued by BSPGCL in August on behalf of North Bihar Power Distribution Company Ltd (NBPDCL) and South Bihar Power Distribution Company Ltd (SBPDCL), according to the release.

The Adani Group company will invest about $3 billion to build the three-unit plant (800 MW each) and associated infrastructure under the design, build, finance, own, and operate (DBFOO) model. Coal linkage for the project has already been allocated under the SHAKTI policy of the Government of India.

Adani Power expects the project to generate 10,000–12,000 direct and indirect jobs during the construction phase and about 3,000 jobs once the plant becomes operational. It plans to fully commission the facility within 60 months.

Last month, the Gautam Adani-led group received a Letter of Intent (LoI) from BSPGCL after offering the lowest supply rate of ₹6.075 per kWh. “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 industrialisation in the state. Our plant will be an advanced, low-emission ultra-supercritical one and will supply dependable, competitively priced, high-quality power to the state,” said S.B. Khyalia, Chief Executive Officer of Adani Power.

The first unit is expected to be commissioned within 48 months of the appointed date, and the final unit within 60 months.

In December 2024, the Adani Group had announced plans to invest ₹20,000 crore to set up a thermal power plant in Bihar at the Bihar Business Connect 2024. In addition, the conglomerate had proposed investments of ₹2,300 crore in logistics, gas distribution, and agri-logistics; ₹2,100 crore in smart meter manufacturing; ₹2,500 crore in cement manufacturing; and another ₹1,000 crore in developing strategic infrastructure such as Gati Shakti Railway Terminals, Inland Container Depots (ICDs) and industrial warehousing parks in the state.