New Delhi: The Bihar State Power Generation Company Limited (BSPGCL) on Tuesday signed two Memorandums of Understanding (MoUs) with private developers for setting up pumped storage power projects totaling 2,120 MW capacity in Nawada district. The projects, estimated at a combined investment of Rs 13,000 crore, aim to enhance the state’s energy security, storage capacity, and renewable energy integration.
MoUs Signed in Presence of CM Nitish Kumar
The agreements were inked in the presence of Chief Minister Nitish Kumar, Energy Minister Bijendra Prasad Yadav, senior state ministers, and top bureaucrats. These initiatives fall under the Bihar Pump Storage Project Promotion Policy, 2025, highlighting the government’s focus on modernizing the state’s power infrastructure and promoting clean energy.
Project Details and Investment
Under the MoUs, GreenCo Energies Pvt Ltd will develop a 1,200 MW pumped storage project at Ekamba village, with an estimated investment of Rs 7,800 crore. Simultaneously, Sun Petrochemicals Pvt Ltd will establish a 920 MW project at Gosaitari village, costing approximately Rs 5,200 crore.
Both projects are strategically located in the hilly terrains of Nawada district, leveraging natural elevation differences for pumped storage operations. The energy storage capacities are projected at 7,308 MWh for the GreenCo project and 6,973 MWh for the Sun Petrochemicals project, bringing a combined storage potential of 14,281 MWh.
Enhancing Grid Stability and Renewable Integration
The pumped storage systems will be off-stream, closed-loop configurations. Water will be stored during monsoon periods and released during peak electricity demand, providing flexible power generation. The mechanism is expected to improve grid stability and complement intermittent renewable energy sources, including solar and wind.
Job Creation and Economic Impact
The state government estimates that the Rs 13,000 crore investment will generate around 8,000 jobs during the construction phase. Additionally, the projects are expected to strengthen Bihar’s capability in peak power demand management, enhance energy self-reliance, and contribute to moderating long-term electricity procurement costs.
Chief Minister Nitish Kumar emphasized the strategic importance of these projects, stating, “Pumped storage will play a crucial role in stabilizing the grid as renewable energy capacity expands, enhancing Bihar’s energy security and self-reliance.”
Energy Minister Bijendra Prasad Yadav added, “These projects reflect the government’s commitment to providing uninterrupted, clean power to industries and residents. Bihar offers a conducive environment for industrial and infrastructure investment, supporting India’s net-zero emission target of 2070.”
Support and Implementation
BSPGCL will facilitate land allocation, statutory clearances, and administrative support to expedite project implementation. While construction timelines are contingent on approvals, the state government expects rapid commencement following policy notification.
About BSPGCL
BSPGCL, the state-owned power generation utility of Bihar, plays a pivotal role in developing energy infrastructure, promoting renewable energy, and ensuring reliable electricity supply across the state. The signing of these MoUs marks a significant step in the company’s ongoing efforts to strengthen Bihar’s power generation capacity and sustainability initiatives.
