Indian billionaire Gautam Adani’s group will build and operate a $3 billion coal-fired power plant in Bihar state with a 2.4 gigawatt capacity, making it the largest coal plant built in India through private investment in a decade, Reuters reported.
The plant will consist of three units, with the first scheduled to be commissioned within four years. The final unit is expected to come online in five years, according to Adani Power. The new project in Pirpainti will be Adani Power’s largest new plant since its 3.3 GW Tiroda plant in 2014.
Adani Power will supply electricity to Bihar’s state-run distribution companies at just over 6 Indian rupees ($0.0684) per kilowatt-hour from the Pirpainti facility.
This project marks the return of private investment to India’s greenfield coal-based power sector after more than a decade of absence.
Currently, Adani operates 18.1 GW of coal-fired power capacity across eight states and 12 plants. The company recently won bids to build a 1.5 GW plant in Uttar Pradesh in May and a 1.6 GW facility in Maharashtra in September 2024.
India remains the world’s second-largest coal producer and consumer, generating about three-quarters of its electricity from coal annually. This contrasts with China, the top coal user, which has been steadily reducing its dependence on the polluting fuel.
Prime Minister Narendra Modi’s government aims to increase the country’s coal-based capacity by 80 GW, raising it to over 290 GW by 2032. This expansion is seen as necessary to ensure a reliable, round-the-clock power supply.
Coal’s share in India’s energy mix is gradually decreasing, following rapid renewable energy growth, even after increased coal use during the COVID-19 pandemic.
