Adani Power Ltd. won the tender announced by state-owned Bihar State Power Generation Co., offering 6,075 rupees ($0.07) per unit of electricity — the lowest bid in a “rigorous competitive process,” Adani Power said in a statement on Thursday. The project will see the company receive government coal quotas to power the plant, helping Bihar move closer to its goal of doubling its generating capacity by 2030.
The decision to build the fossil-fuel power plant comes ahead of elections in Bihar state, seen as crucial for Prime Minister Narendra Modi’s coalition government. Adani, which is linked to the ruling party, has resumed its investment growth drive after pressure from a US investigation last year.
“We will build a new power plant from scratch with an investment of $3 billion. This project will contribute to the industrialization of the state,” said S.B. Khyaliya, CEO of Adani Power. According to him, the plant will be a low-emission ultra-supercritical, capable of providing reliable and competitive power supply to the region.
Coal remains India’s key energy source, providing nearly three-quarters of all electricity generation in the country, which is the world’s third-largest emitter of greenhouse gases. Despite rapid growth in renewable energy capacity (solar, wind, nuclear), demand growth is outpacing available generation. In response, the government plans to add nearly 90 GW of coal capacity over the next decade, while also developing clean energy, which will surpass fossil fuels in installed capacity by 2025.
As per the terms of the contract, the thermal power plant will be constructed in Pirpanti area of Bhagalpur district and will supply 2274 MW of electricity to North Bihar Power Distribution Co. and South Bihar Power Distribution Co.
The first phase of the station, which is being implemented under the DBFOO model (design, build, finance, own and operate), should be put into operation within 48 months.
Adani Group recently strengthened its financial position by selling its stake in AWL Agri Business, which eased funding pressures. At the same time, the group is actively investing in green energy – Adani Green Energy Ltd. recently reached 15,000 MW of operating capacity, becoming the leader in India in terms of the pace and volume of new capacity commissioning. The company aims to reach 50,000 MW by 2030.
Source: Reuters