Pirpainti Thermal Power Plant

• 25 Sep 2025

Why in News?

The opposition party in Bihar held a protest march in Patna against the state government’s decision to lease 1,050 acres of land in Bhagalpur to the Adani Group for just Rs 1 per year, to establish a thermal power plant in Pirpainti, Bhagalpur.

What is the Pirpainti Thermal Power Plant Project?

• About: Adani Power Limited is developing the Pirpainti Thermal Power Plant, a 2,400-MW coal-based project (USD 3 billion) in Bhagalpur district’s Pirpainti region. 
  • The project will comprise three units of 800 MW each and is expected to create 10,000–12,000 jobs during construction and about 3,000 permanent jobs once operational.
• Allegations Against the Project:
  • Land Lease: 1,050 acres leased to Adani Power for 33 years at Rs 1/year, termed a gift by the opposition party.
  • Environmental Impact: Alleged cutting of 10 lakh trees, leading to ecological damage.
  • Farmland Conversion: Fertile agricultural land reportedly reclassified as barren for project clearance.
  • Power Tariff: Bihar residents may pay around Rs 6 per unit, higher than rates in Maharashtra and Uttar Pradesh.
• Government Response: Adani Power secured the project through a transparent Tariff-Based Competitive Bidding (TBCB) process under Section 63 of the Electricity Act, 2003. 
  • The land had already been leased in 2022 to the Bihar State Power Generation Company (BSPGCL) at Rs 1 per year, prior to the latest bidding in which Adani emerged as the winner. 
  • The nominal lease rate was included in the bidding framework to lower power generation costs, while land ownership remains with Bihar’s Energy Department.

Bihar Industrial Investment Promotion Package 2025

• In August 2025, the Bihar cabinet approved the Bihar Industrial Investment Promotion Package 2025, which allows land allocation at a token rate of Rs 1 to eligible investors.
• Under the policy:
  • Investments of Rs 100 crore with 1,000 jobs created qualify for 10 acres free land.
  • Investments of Rs 1,000 crore qualify for up to 25 acres of free land.
  • Fortune 500 companies are entitled to 10 acres of free land.
  • Other investors receive a 50% discount on Bihar Industrial Area Development Authority (BIADA) land rates.
• This scheme is open to all qualifying investors until 31st March, 2026, making the Rs 1 land transfer not exclusive to Adani.