Adani Power Limited , India's largest private sector thermal power generator, has secured a significant contract to develop and operate a 2,400 MW thermal power project in Bhagalpur, Bihar. The company received a Letter of Intent (LoI) from Bihar State Power Generation Company Limited (BSPGCL) on August 6, 2025, marking a major expansion of its power generation portfolio.

Project Details

The greenfield Ultra-supercritical power plant will be constructed at Village Pirpainti in Bhagalpur district, Bihar. The project, which will be developed under a Design, Build, Finance, Own, and Operate (DBFOO) model, is estimated to require an investment of approximately $3 billion.

Key aspects of the project include:

• Total capacity: 2,400 MW (3 x 800 MW units)
• Net capacity to be supplied: 2,274 MW
• Lowest bid: Rs 6.08 per unit
• Fuel source: Allocated coal linkage under the SHAKTI Policy
• Commissioning timeline:
  • First unit: Within 48 months of the appointed date
  • Last unit: Within 60 months of the appointed date

Power Supply Agreement

Adani Power will supply the entire net capacity of 2,274 MW to North Bihar Power Distribution Company Ltd. (NBPDCL) and South Bihar Power Distribution Company Ltd. (SBPDCL). The company emerged as the lowest bidder in a competitive tender process, securing the contract with a final supply price of Rs 6.08 per kWh.

Economic Impact

The project is expected to have a significant economic impact on the region:

• Direct and indirect employment generation: 10,000-12,000 jobs during the construction phase
• Permanent jobs: Approximately 3,000 during operation
• Potential boost to industrialization in Bihar

Company Statement

S.B. Khyalia, Chief Executive Officer of Adani Power, commented on the project: "We are pleased to have won the bid to develop and operate a 2,400 MW thermal power project in Bihar. We will set up a new greenfield plant with an investment of ~$3 billion, which is expected to further aid industrialization in the state. Our plant will be an advanced, low-emission Ultra-supercritical and will supply dependable, competitively priced, and high-quality power to the state."

Next Steps

Adani Power expects to receive the Letter of Award (LoA) in due course, following which a Power Supply Agreement (PSA) will be executed with the State Utilities. This project will further strengthen Adani Power's position as a leading player in India's power sector, adding to its existing installed thermal power capacity of 18,110 MW spread across eight states.

The company's commitment to harnessing technology and innovation aligns with its goal of transforming India into a power-surplus nation and providing quality, affordable electricity for all.

Adani Power shares saw a nearly 2% increase, reaching Rs 575.00, following the company's board approval of a 1:5 stock split. This strategic move aims to enhance retail investor participation by making the shares more accessible.

Stock Split Details

The board has given the green light to subdivide each equity share with a face value of Rs 10.00 into five shares with a face value of Rs 2.00. It's important to note that this split won't alter the company's total share capital, which stands at Rs 3,856.90 crore. The record date for this split is yet to be announced, pending shareholder approval.

Financial Performance

Adani Power's recent quarterly results paint a mixed picture:

While the year-on-year comparisons show declines, it's worth noting that EBITDA from continuing operations saw a 12.70% increase on a sequential basis.

Market Sentiment

Despite the recent uptick, Adani Power's stock has experienced a 21.00% decline over the past 12 months. However, looking at a longer time frame, the stock has delivered an impressive 105.00% return over two years.

Analysts maintain a positive outlook on Adani Power:

• Consensus Rating: Strong Buy
• Average Target Price: Rs 634.00
• Potential Upside: 11.00%

The stock split decision, coupled with the company's financial performance and analyst sentiment, suggests that Adani Power is focusing on broadening its investor base while navigating market challenges.