Adani Power Awarded 1020 Acres of Land at ₹1 per Year in Bihar – Locals Protest, Allege Irregularity in Compensation

Key Points:

Adani Power Ltd. (ADL) signed a power supply agreement (PSA) with the Bihar government on 13 September 2025 to set up the largest privately-owned power station in the state in Bhagalpur district. The firm has been leased 1020 acres of land for the project at a rate of only ₹1 per acre per year for 25 years.

ADL was awarded a tender for the project in August 2025, over JSW Energy, Torrent Power, and the Bajaj Group’s Lalit Power. The PSA agreement between ADL and the Bihar State Power Generation Company Ltd. (BSPGCL) has empowered the Adani Group subsidiary to set up a ‘greenfield 2400 MW ultra-supercritical power plant’ in Pirpainti, Bhagalpur. The plant is to be coal-powered with low emissions, supplying 2274 MW of electricity to north and south Bihar at a final supply price of ₹6/KWh. ADL is set to invest around ₹25,000 crore into the plant.

PM Modi laid the foundation stone for the plant on 15 September 2025 while inaugurating a number of other developmental projects in Bihar. He said that this was part of the effort to make Bihar self-reliant in the power sector. In a press release, ADL stated that the plant is expected to create 10,000 – 12,000 jobs during construction, and around 3,000 once in operation.

Instead of excitement, however, the development has been met with protests from the residents of Pirpainti over unfair and unequal rates of compensation for their land, and the lack of redressal mechanisms. They also drew attention to the livelihood, environmental and health consequences of the plant.

See Also: Adani Power to supply power from greenfield 1,600 MW thermal plant in Madhya Pradesh

In a ground report by Molitics and Bharati News, conversations with the villagers revealed that compensation rates for different plots of land were drawn up arbitrarily, without consultation or surveys. Members of the same family received notices with varying rates for shares of the same plot of land. In one case, two neighbouring plots were given starkly different rates – one priced at ₹60 lakh/acre and the other at ₹1.4 crore/acre. Farmers asked why a uniform rate was not applied to all the land.

Land acquisitions made for the project stretch back to 2014, when the project was under the purview of the government. Many people alleged that they are yet to receive compensation for these 12-year-old acquisitions, and even when they do, it will be at 12-year-old rates.

Farmers also alleged that many plots were labelled as ‘barren’ to justify lower rates of reimbursement. They question how the government can refuse them fair compensation for their land while handing it over to Adani for nothing, and what good is a one-time reimbursement if they are losing their livelihoods. They received no help from local authorities, and while attempting to raise their grievances to Modi during his visit to the state, they were detained by the police.

Another major concern of Pirpainti’s residents is the environmental and health impact of the plant. Firstly, construction of the plant will require 10 – 20 lakh mango and litchi trees to be cut; this will have not only an ecological impact but will take a toll on Bihar’s agrarian economy. These orchards are important cash crops and one of the few climate-resistant options available to farmers in the flood-prone state.

Secondly, once in operation, the coal-based power plant will produce high levels of fine particulate (PM2.5) pollution and leech dangerous chemicals into nearby soil and water. High levels of arsenic and PM2.5 pollutants have been identified in Bhagalpur district, which is already home to another power plant, the 2,340 MW Kahalgaon Super Thermal Power Station – Adani’s power plant will only exacerbate health issues for those living in the vicinity.

Opposition parties like the Congress have backed these concerns, saying that Bihar’s NDA government had “gifted” the land to “Rashtra Seth Gautam Adani”. The Bihar government replied saying, “All the due process of tendering was followed in this case,” emphasising that Adani power had offered the lowest quotation of all the competitors. Officials are yet to take cognizance of Bhagalpur’s residents’ concerns. [Rh/DS]

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