The Bihar State Electricity Board (BSEB) is planning to strike joint venture agreements with NHPC Ltd for setting up two super critical thermal power stations of 2X 660 MW each at Kajra and Pirpainti, respectively.

The hydro-power major is recently allowed by the Centre to foray in thermal power generation.

While responses were not available from NHPC, the Bihar Government sources told Business Line that BSEB will hold a 51 per cent majority in the joint ventures to make it a deemed State Government undertaking. However, NHPC will manage the company.

“NHPC has shown interest in the projects. We are hopeful to firm up plans in next two months,” a State Government official told Business Line .

While the joint venture will be responsible for securing fuel supply for the projects, the State Government is lobbying at the Centre to secure captive assets for the project.

Bihar previously tried to develop both the projects through competitive tariff bidding route.

The initiative failed to attract investors’ attention due to concern over coal availability.

Solely dependent on Central allocation of power, Bihar is currently supplied with approximately 1,200-1,300 MWof electricity.

Leaving aside 300-350 MW distributed to Nepal (60 MW), railways (150 MW) and essential services (100-150 MW); BSEB is left with an effective availability of approximately 900-950 MW to meet an average estimated load of 2,000 MW.

The result is large parts of the State beyond the capital city of Patna – which consumes 400 MW – runs on diesel generators.

The situation may improve following commissioning of BSEB’s 2 X 250 MW project at Baruni and; 2X 660 Bhar-II supercritical project of NTPC.

While Baruni will take approximately two years to be completed, first unit of Bhar-II is expected to be commissioned next year.

Bihar will get half of the generation from the project.

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