India’s Adani Power Limited (APL) has signed a 25-year power supply agreement (PSA) with Bihar State Power Generation Company Limited (BSPGCL) to supply 2.4GW of power.  

This power will be sourced from a greenfield ‘ultra super critical’ plant to be established at Pirpainti in the Indian state of Bihar.  

The agreement follows a letter of award issued by BSPGCL to Adani Power last month, on behalf of both North Bihar Power Distribution Company Limited and South Bihar Power Distribution Company Limited.

Adani Power secured the project by quoting the lowest tariff of Rs6.075 ($0.06) per kilowatt hour.

The company plans to invest around $3bn to develop the new plant, comprising three units of 800MW each. 

The plant will be developed under a design, build, finance, own, and operate model. 

This project is expected to be operational within 60 months. 

During the construction, the project is expected to create an estimated 12,000 direct and indirect jobs while the operation phase will support about 3,000 jobs. 

The coal supply for the power plant has been allocated under the government of India’s SHAKTI Policy. 

Last month, Adani Power completed the acquisition of Vidarbha Industries Power Limited in Nagpur, Maharashtra. 

Vidarbha is a two-times-300MW coal-fired power plant situated in Butibori, in the Nagpur district of Maharashtra. 

India’s power demand is expected to increase in the upcoming years, with peak requirement expected to climb from the present approximately 250GW to around 400GW by 2031-32 and more than 700GW by 2047.