BJP Leader RK Singh Alleges ₹62,000 Power Scam Between Adani Power and Bihar Government Ahead of Polls

Key Points

On Tuesday, 4 November 2025, BJP leader, former MP, and ex-Union Power Minister RK Singh levelled allegations of a ₹62,000 power scam between the Bihar government and Adani Power Ltd (APL). The accusation was based on an earlier agreement between the state and APL of leasing 1020 acres of land at a rate of only ₹1 per acre per year for 25 years.

The charge was made during an interview with ABP News ahead of phase 1 polls of the 2025 Bihar Elections on 6 November 2025. “This is a very big scam,” Singh said during the interview, “An agreement has been signed with Adani that for 25 years, the government will make electricity Rs 6.075 per unit. This is the agreement they have signed. Adani has been given a lot of money to install a power plant at an inflated price.”

As power minister, Singh had reviewed plans for the 2400MW thermal plant which stretched back to 2012. In another interview with The Indian Express, Singh elaborated that the estimated cost for the project was ₹24,900, at a rate of ₹10 crore per MW – based on this, the price of electricity comes out to ₹2.75/unit.

“I learnt about the power project being awarded at a fixed capital cost of Rs 15 crore per MW,” he said. He said that the government had also agreed to pay APL ₹4.16/unit. “Extra payment annually would be around Rs 2,500 crore. As the agreement is for 25 years, the projected loss to the state exchequer would be about Rs 62,000 crore.”

Singh said to APB News that APL would recover its investments with additional returns thanks to inflated prices of electricity being supplied – “The public will pay.” He demanded a CBI investigation into the matter, saying that all involved officials “should go to jail.”

“If I am wrong, let them correct me,” Singh said about the Bihar government during the second interview. “But from my experience as the Union Minister of Power for seven years, I can say with responsibility that this project needs a review.”

Problems With the Power Project and RK Singh’s Rift With the BJP

Reports from September 2025 revealed that APL leased land in Bihar’s Bhagalpur district at the nominal price to construct a thermal power plant. APL was awarded the tender over three other companies. It entered into a Power Sharing Agreement with the Bihar State Power Generation Company Ltd. (BSPGCL) to supply 2274 MW of electricity to north and south Bihar at a supply price of ₹6.075/KWh. The company plans to invest a total of ₹25,000 crore into the project.

At the time, investigators highlighted the opaque and inconsistent compensation process applied to land acquired for the project, and the lack of a redressal mechanism for farmers to avail. Singh’s allegation builds upon these initial reports.

Questions also arose on the integrity of the project: why the nominal rate for the land being leased? Why was a second power plant being constructed in such close proximity to another, in violation of environmental regulations? What is the ecological cost of the project? What was the process for tender approval?

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

Meanwhile, the timing of RK Singh’s allegation also warrants scrutiny.

The first interview was published two days prior to the first phase of the 2025 Bihar Assembly Elections. “I am telling all this now because I came to know about it recently. It was red-flagged to me by some energy experts just a couple of days ago,” he explained to The Indian Express about the timing of his revelation.

Singh, a BJP leader, was a Member of Parliament from Arrah, Bihar, until he lost the seat in the 2024 Lok Sabha Elections. Since, relations between the BJP and Singh have soured.

In October 2025, Singh took to social media, urging residents of Bihar not to vote for candidates with criminal records. In the post, he named several candidates from the opposition RJD, allies JD(U), and even his own party, the BJP. He asked several of his colleagues, including Deputy CM Samrat Choudhary, to address allegations of corruption raised against them by Prashant Kishor.

Singh was subsequently excluded from the BJP’s Bihar election campaign and manifesto committees. He admitted to The Indian Express that he no longer sees eye-to-eye with ‘top’ BJP officials, after being pressured to “favour certain companies” during his tenure as Power Minister.

Reactions to Power Scam Allegation and Adani Power Limited Reply

The Congress, which had protested the initial allocation in September 2025, revitalised its efforts after Singh’s accusation right before the Assembly Election. “Senior BJP leaders are openly calling for a CBI investigation into the scandal exposed by their own government,” Pawan Khera said on social media.

Adani Power Ltd. issued a public statement on Wednesday, 5 November 2025, denying the allegations. “We note with concern about continued misinformation being shared by leaders of certain political parties about the upcoming power plant in Bhagalpur district of Bihar, perhaps without knowledge about the transparent process followed by the Government of Bihar,” APL said.

The company clarified that the project had a history over a decade long, that they won the project by bidding the lowest, and that the specifics of the agreement were based on state laws.

The nominal land rate availed by APL was in line with the new Bihar Industrial Investment Promotion Policy 2025, enacted in August 2025. “It is not a special concession granted to a particular party but is a notified policy provision available to any investor in accordance with the provisions,” the statement read.

The statement also made public details of the tender process, which revealed that APL had submitted the lowest bid out of the four competitors. It had proposed a tariff of ₹6.075/KWh, broken into a fixed charge of ₹4.165/KWh and a fuel charge of ₹1.910/KWH. The second lowest bidder, Torrent Power Ltd., had submitted a tariff of ₹6.145/KWh, comprising a fixed charge of ₹4.210/KWh and a fuel charge of ₹1.935/KWH. APL also projected lower costs of fuel and transportation than any of the other bidders, all of which submitted the figures.

While this answers many of the earlier questions raised against the article, some doubts and criticisms remain: how could APL offer lower fixed costs than its competitors? Is there any link between the enactment of the new Bihar industrial policy and allotment of the tender right after? What of the earlier concerns around compensation and environmental damage? And where does this charge fall amongst other allegations of collusion between the Adani Group and the BJP government? [Rh]

Suggested Reading: