New Delhi: Adani Power’s stock experienced a notable recovery on August 29, rising nearly 3% after the announcement of a significant thermal power project in Bihar. The company, India’s largest private sector thermal power producer, secured a Letter of Award (LoA) for a 2,400 MW project. This project, set to bolster India’s energy landscape, promises thousands of jobs and affordable power supply while aiming to meet the nation’s growing energy demands.
Adani Power’s Milestone Project in Bihar
Adani Power Ltd. has firmed up plans to expand its footprint in India’s power sector by securing a Letter of Award (LoA) from the Bihar State Power Generation Company Ltd. (BSPGCL). This strategic move marks the approval of a significant long-term electricity procurement contract set to span 25 years. The company will be establishing a cutting-edge 2,400 MW thermal power plant at Pirpainti in Bhagalpur district, underlining its commitment to addressing the energy needs of one of India’s key states.
The LoA was not just awarded in isolation; it came from BSPGCL on behalf of North Bihar Power Distribution Company Ltd. (NBPDCL) and South Bihar Power Distribution Company Ltd. (SBPDCL). Following this milestone, the next logical step is the signing of a Power Supply Agreement (PSA) between the involved parties, paving the way for project execution and eventual power generation.
Future of Power Demand in India
India is on the brink of a significant escalation in power demand, with projections indicating peak requirements will soar from about 250 GW today to a staggering 400 GW by 2031-32—and more than 700 GW by 2047. This growth is attributable to ongoing industrialization, urbanization, and a rapidly growing population. As such, thermal power will play an essential role in meeting these demands. The government is already planning to add an additional 100 GW of thermal capacity by 2035, ensuring the stability of the grid amidst increasing consumption.
S.B. Khyalia, CEO of Adani Power, emphasized the project’s importance by stating, “With our upcoming ultra-supercritical, high-efficiency Pirpainti project in Bihar, we are setting new benchmarks in operational excellence and sustainability. This plant will provide affordable and uninterrupted power to the people of Bihar, catalysing industrialisation, strengthening the state’s economy, and supporting the prosperity of its people. Through projects such as this, Adani Power remains committed to playing a leading role in securing India’s energy future.” This commitment resonates not only with key stakeholders but also reflects the aspirations of millions looking for a reliable electricity supply.
Investment and Job Creation
Adani Power emerged as a frontrunner in a competitive Tariff-Based Bidding process initiated by BSPGCL, having offered the lowest supply price at ₹6.075 per kWh. The anticipated investment for this ambitious project is around $3 billion, which will encompass both the plant and necessary infrastructure. This project isn’t just about numbers; it is poised to create approximately 10,000 to 12,000 direct and indirect jobs during its construction phase and around 3,000 permanent jobs once operational, positively impacting local communities.
Stock Performance and Market Trends
Adani Power’s stock has demonstrated a mixed performance over the past year. Despite shedding over 7% in the past 12 months, the stock has gained 12% year-to-date in 2025, indicating a strong recovery trend. Notably, August data showed the stock’s value up by 0.7%, heralding its winning streak for the sixth consecutive month. However, it struggled earlier in the year, facing declines of 3% in January and 6.7% in February before regaining momentum.
The stock reached its 52-week high at ₹684.90 in September 2024 and a 52-week low of ₹430.85 in November 2024, illustrating the volatility and potential within the energy sector. Investors are closely watching the stock’s movement, particularly in light of promising developments like the recent project in Bihar, which may positively influence future market trends.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Bankerpedia’s Insight💡
Adani Power’s recent Letter of Award for a substantial thermal power project in Bihar signifies a pivotal moment for India’s energy landscape and economic growth. This investment, projected at $3 billion, will not only boost job creation but also enhance energy security in a rapidly growing power demand scenario. As the banking and finance sector observes increased capital flows towards sustainable projects, stakeholders should recognize the momentum in renewable and thermal energy investments. For investors, this development suggests potential growth opportunities in both the energy and infrastructure sectors, emphasizing the importance of staying informed and adaptable.
What Does This Mean for Me?🤔
- Salaried Person → Job opportunities may increase, boosting economic stability.
- Business Owner → Increased electricity supply enhances business operations and growth.
- Student → Increased job opportunities in energy sector for students.
- Self-employed → Increased power supply could boost self-employed business growth.
- Homemaker → Improved electricity supply may lower household energy costs.
- Retiree / Senior Citizen → Potential increase in energy reliability and affordable rates.
- Job Seeker → More job opportunities in Bihar’s power sector emerging.
- Farmer / Rural Citizen → Affordable, reliable power boosts rural development and opportunities.
Research References📚
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