Adani Power announced on 7 August that it had obtained a Letter of Intent (LoI) to invest $3 billion in the development and operation of a 2,400 MW greenfield thermal power project in Bihar.
2,400 MW Thermal Project to Supply Power to Bihar Utilities
North Bihar Power Distribution Company Ltd. (NBPDCL) and South Bihar Power Distribution Company Ltd. (SBPDCL) will receive 2,274 MW of power from a 2,400 MW thermal power project that will be built at Pirpainti in the Bhagalpur District of Bihar, thanks to the bid that India’s largest private sector thermal power generator won from Bihar State Power Generation Company Ltd. (BSPGCL).
In a very competitive bidding procedure, Adani Power came in last with a final supply price of INR 6.075 per kWh. A greenfield 3×800 MW ultra-supercritical power plant, to be established under the Design, Build, Finance, Own, and Operate (DBFOO) model, will provide power as part of the contract.
Project Timeline: First Unit to Be Commissioned in 48 Months
Within 48 months of the scheduled date, the first unit will be put into service, and the last one within 60 months. Adani Power’s CEO, S.B. Khyalia, expressed the company’s satisfaction at winning the proposal to build and run a 2,400 MW thermal power project in Bihar.
With a $3 billion investment, it will establish a new greenfield factory that will help the state’s industrialisation even further. He added that the plant will be a state-of-the-art, low-emission Ultra-supercritical, one that will provide reliable, reasonably priced, and high-quality power.
It is anticipated that the project will create 10,000–12,000 direct and indirect jobs during development and 3,000 after it is operational.
SHAKTI Policy to Provide Fuel Linkage
Fuel for the plant will come from the designated coal linkage under the Central government’s SHAKTI Policy. According to the corporation, the Power Supply Agreement (PSA) with the State Utilities would be signed after it receives the LoA (Letter of Award) in due order.
The biggest private thermal power producer in India is Adani Power, which is a component of the Adani portfolio. In addition to a 40 MW solar power plant in Gujarat, the corporation has an installed thermal power capacity of 18,110 MW distributed across 12 power plants in Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Madhya Pradesh, Jharkhand, and Tamil Nadu.
Acquisition Watch: Adani Group Bids for Jaiprakash Associates
According to media sources, the Adani group has emerged as the front-runner to purchase Jaiprakash Associates Ltd (JAL), which is presently going through insolvency processes, with a bid of up to INR 12,500 crore.
With no limitations attached, the company has offered an upfront payment of about INR 8,000 crore.
However, if a legal issue pertaining to its JP’s sports city project is settled, Dalmia Group is anticipated to present a serious challenge to Adani Group and maybe outbid Adani’s offer. The Supreme Court of India is still considering the matter.
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