₹13,000 Crore Investment to Power Bihar’s Clean Energy Future with 14.28 GW Pumped Storage Projects

On Tuesday, Memorandum of Understanding (MoUs) were signed between Bihar State Power Generation Company Limited (BSPGCL) and selected agencies for the pumped storage projects in the presence of Honorable Chief Minister Shri Nitish Kumar, Honorable Deputy Chief Ministers Shri Samrat Choudhary and Shri Vijay Kumar Sinha, Honorable Energy Minister Shri Bijendra Prasad Yadav, and Honorable Water Resources Minister Shri Vijay Kumar Chaudhary. Also present on this occasion were Chief Secretary Shri Pratyaya Amrit, Chairman of Electricity Regulatory Commission Shri Aamir Subhani, Secretary to Government of Bihar Shri Kumar Ravi, Secretary of Energy Department and Chairman-cum-Managing Director of Bihar State Power Holding Company Limited Shri Manoj Kumar Singh, Secretary to Honorable Chief Minister Shri Chandrashekhar Singh, MD of SBPDCL Shri Mahendra Kumar, and MD of NBPDCL Shri Rahul Kumar.

With the objective of strengthening energy security and promoting renewable energy in the state, the Bihar government has implemented the Pump Storage Policy-2025. Based on this policy, Bihar State Power Generation Company Limited has selected two agencies – GreenCo  Energies Pvt. Ltd. and Sun Petrochemicals Pvt. Ltd. Both these projects are proposed in the hilly areas of Nawada district, where the natural height difference is suitable for pump storage arrangement. The energy storage capacity of the project proposed by GreenCo Energies Pvt. Ltd. is 7,308 megawatts and the capacity of the Sun Petrochemicals Pvt. Ltd. project is 6,973 megawatts. Thus, the combined capacity of both projects is 14,281 megawatts.

These two projects will bring an investment of ₹13,000 crore to the state. During the construction phase of the project, approximately 8,000 people will get employment. Through these projects, Bihar will gain unprecedented capacity for integration of renewable energy, peak demand management, and maintaining grid stability. This will enable electricity consumers to get electricity at cheaper rates. This initiative started under the state government’s pump storage policy is an important step towards making Bihar self-reliant and technically capable in the energy sector in the future.

“These Projects Will Enhance the State’s Energy Security and Self-Reliance”: Shri Nitish Kumar

Electricity generation and grid stability in the state will increase. It will particularly help in balancing renewable sources like solar and wind energy. These projects will also enhance the state’s energy security and self-reliance. This reflects Bihar’s major step in the energy sector.

“Energy Department is Committed to Providing Uninterrupted and Clean Electricity to the People and Industries of Bihar”: Shri Bijendra Prasad Yadav

Both these projects of BSPGCL are strong proof that the Energy Department is committed to meeting the government’s investment targets and fulfilling the state’s growing electricity needs. Highlighting the importance of the projects, Honorable Energy Minister Shri Bijendra Prasad Yadav said, “Under the visionary leadership of Honorable Chief Minister Shri Nitish Kumar, the Energy Department is committed to providing uninterrupted and clean electricity to the people and industries of Bihar. There has been no electricity consumption problem in the state for the past five years.” The Energy Minister appealed to investors, saying, “Investors should survey in Bihar and present their utilities and industrial sectors to the government. In Bihar’s growing development environment, the Bihar government is committed to energy conservation and employment generation. These two projects will not only help in fulfilling the state’s energy needs but will also prove to be an important initiative towards achieving India’s Net Zero emission target of 2070.”

About Project

Under the project, pump storage power houses with capacities of 1,200 MW will be constructed in Ekamba village and 920 MW in Gosaitari village of Nawada district. In both these projects, using off-stream and closed-loop systems, water from the Dhanerjay and Sakri rivers will be stored during monsoon and renewable energy will be generated from it. This technology has no adverse impact on the natural flow of rivers and will play an important role in grid stability.

Investment of ₹13,000 Crore in the State Through the Project

For the state’s economic development and employment generation, the Bihar government has prepared an action plan for investment of ₹50 lakh crore in the next five years. It is noteworthy that this is the first MoU between the Bihar government and investors after the formation of the new government in Bihar, with a total value of ₹13,000 crore. Both these projects will be completed by the selected agencies at their own expense at a total cost of ₹13,000 crore. GreenCo Energies will invest ₹7,800 crore in Ekamba and Sun Petro Chemicals will invest a total of ₹5,200 crore in Gosaitari. BSPGCL under the Energy Department will provide all necessary support to both agencies. Both projects will be completed in three years.

Project Started Within Five Months of Policy Formulation

Within just five months of the notification of the Bihar Pump Storage Project Promotion Policy, 2025, the Energy Department has completed all necessary work including agency selection and land allocation. These projects are a strong example of the state government’s commitment to Net Zero emissions and the Energy Department’s efficiency. The materialisation of these projects on the ground within just five months of the notification of the Bihar Pumped Storage Project Promotion Policy, 2025, reflects the Energy Department’s commitment, efficiency, and the state government’s strong resolve towards Net Zero emissions.