Adani Power to invest $3 billion in Bihar, signs 25-year PSA with BSPGCL

Adani Power will set up a 2,400 MW state-of-the-art power plant in Bihar with an investment of $3 billion (about Rs 26,482 crore). The Adani Group company said in a statement on Saturday that it has signed a 25-year power supply agreement (PSA) with Bihar State Power Generation Company Limited (BSPGCL), under which power will be supplied from the project to be set up in Pirpainti in Bhagalpur district of the state.

Deal done at the rate of Rs 6.075 per kilowatt hour

This PPA is different from the letter of acceptance issued by BSPGCL to Adani Power on behalf of North Bihar Power Distribution Company Limited (NBPDCL) and South Bihar Power Distribution Company Limited (SBPDCL) in August. Adani Power won the project by offering a minimum supply rate of Rs 6.075 per kilowatt hour. The company said that it plans to invest about three billion US dollars to build the new plant and related infrastructure.

The target is to start the plant within 60 months

This project will be developed under the design, build, finance, own and operate model. The company aims to commission the plant within 60 months (5 years). Coal linkage for the power plant has been allotted under the Shakti Policy of the Government of India. The project will generate direct and indirect employment for 10,000-12,000 people during the construction phase and 3,000 people when operations begin.