According to Forbes, Adani Power, the energy corporation of billionaire Gautam Adani, has secured the rights to build a 2,400 MW coal-fired power plant in Bihar, India, with a total investment of approximately $3 billion.
On August 8th, Adani Power emerged as the winner of a highly competitive bid by offering the lowest electricity tariff. The corporation is expected to soon sign individual power supply contracts with state-owned utility companies.
“We will be building a brand new plant with a $3 billion investment, promising to boost industrialization in Bihar,” said S.B. Khyalia, CEO of Adani Power.
Adani Power’s leadership announced that the new coal-fired power plant is expected to deliver a total capacity of 2,400 MW. The first unit is anticipated to become operational in four years. During the construction phase, the project is expected to generate 12,000 jobs and sustain approximately 3,000 jobs once it is commercially operational.
According to the contract, the new coal-fired power project, located in Pirpainti, Bhagalpur district, will supply 2,274 MW to two distribution companies in North and South Bihar. The plant will be built under a DBFOO model (Design, Build, Finance, Own, and Operate), with the first unit expected to be operational within 48 months.
What is the significance of the $3 billion project?
Adani Power to build a 2,400 MW coal-fired power plant in Bihar, India, with a $3 billion investment. Photo: Outlook Business
Bihar is a densely populated state in eastern India. Therefore, the project that Adani Power has won will not only ensure a stable power supply but also attract more industrial investors, thereby improving the lives of its people.
Moreover, the implementation plan for this large-scale project comes just before the Bihar elections (later this year). In fact, Bihar is the state with the fourth-largest number of parliamentary seats in India. This political battlefield is crucial for the ruling alliance of Prime Minister Narendra Modi.
As the world’s most populous country, India is accelerating its investment in renewable energy sources such as solar, wind, and nuclear power. Still, coal remains the dominant fuel, accounting for nearly 75% of the country’s electricity production, the world’s third-largest emitter.
This year, India’s total power generation capacity from clean sources, including large hydropower and nuclear, surpassed that from fossil fuels. But because the pace of renewable energy installation is not yet meeting the ever-increasing demand, the Indian government continues to rely on coal-fired power, planning to add nearly 90 GW of capacity in the next decade.
Adani Power, part of the Adani Group, is India’s largest private thermal power producer, with an installed capacity of 18,110 MW across 12 plants in multiple states.
In recent years, the Adani Group has been accelerating its international expansion, with large-scale deals spanning from Africa to the Middle East, Oceania, and Asia. Among these destinations, Vietnam is a strategic focus in the Group’s international investment journey.
General Secretary To Lam receives Adani Group Chairman Gautam Adani, India, on the afternoon of July 30. Photo: Vietnam News Agency
Most recently, on July 30, at the headquarters of the Central Party Committee, General Secretary To Lam received Mr. Gautam Adani, Chairman of Adani Group (India).
Mr. Gautam Adani, currently the second richest billionaire in India, reported to the General Secretary about the activities and vision of the group in Vietnam and affirmed his desire to commit to long-term strategic investment with a total expected investment of up to $10 billion in areas where the group has strengths.
The Chairman of Adani Group affirmed that with the capacity and experience of the group in India and many other countries around the world, Adani is ready to contribute to the development of Vietnam, especially in areas of interest to Vietnam such as strategic infrastructure, energy, renewable energy, and new technologies.
Adani Group has many years of experience, directly investing in and operating many large projects in important fields such as seaports, airports, transportation, logistics, energy, and digital technology in India and many other countries around the world, including Mundra – India’s largest seaport. In addition, Adani is also India’s leading energy supplier.
Reference sources: Forbes, Business Today, Adani Group
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