Patna, Bihar — A storm has erupted in Bihar politics after reports surfaced that the state government approved the lease of 1,050 acres of land in Pirpainti, Bhagalpur district, to Adani Power Limited for a token rent of just ₹1 per year for 33 years. The land is meant for setting up a 2,400 MW ultra-supercritical thermal power plant, a project that the government argues will strengthen Bihar’s energy security, create jobs, and attract billions in investment.
However, opposition parties led by the Congress have slammed the deal as a “free gift” to the Adani Group. They allege that farmers were pressured to give up land, that compensation has been inadequate, and that nearly 10 lakh trees could be felled for the project. The controversy has quickly become a flashpoint in Bihar’s political and economic debate. (Source: Toofan Express)
What the Bihar Government Approved
The Bihar cabinet gave its nod to provide government-owned land in Pirpainti on a lease of ₹1 per year for 33 years. According to reports, the land was identified by the Bihar State Power Generation Company Limited (BSPGCL), which floated a competitive tender for building and operating the power plant.
- Project size: 2,400 MW (3 units of 800 MW each)
- Type: Ultra-supercritical thermal power plant
- Developer: Adani Power Limited (successful bidder)
- Investment: Approx. USD 3 billion (₹25,000 crore+)
- Lease term: 33 years at ₹1/year (nominal rent)
- Location: Pirpainti block, Bhagalpur district, Bihar
Reports confirm that Adani Power won the project through a competitive bidding process. The company has already received the Letter of Award (LoA) and signed a 25-year Power Supply Agreement (PSA) to supply electricity to Bihar’s distribution companies.
Why ₹1 per Year?
The ₹1 per year lease has raised eyebrows, but experts point out that such token rents are not entirely new in India. Several states use nominal land leases to attract industrial investment or infrastructure projects, while expecting returns in the form of jobs, tax revenue, and long-term economic benefits.
In this case, while the rent is symbolic, Adani Power is required to:
- Build the plant within stipulated timelines.
- Supply power at the bid tariff.
- Pay applicable taxes, duties, and comply with environmental clearances.
- Bear the capital cost of construction (~₹25,000 crore+).
Thus, the lease is not a “free gift” in contractual terms but part of a larger public-private partnership framework. Still, the optics of “1,050 acres for ₹1” has fueled political fire.
The Bid and Power Tariff
The tariff quoted by Adani Power in the competitive bidding process was reported at ₹6.075 per unit. This is higher than power tariffs in some other states, giving critics ammunition to argue that Bihar will “pay more” despite offering land nearly free.
On the other hand, Adani and government officials argue that:
- Bihar faces power shortages and rising demand.
- The new plant will reduce dependence on buying power from the grid or outside states.
- Ultra-supercritical technology is more efficient and emits less CO₂ per unit of electricity.
Political Uproar
The Congress party has led the attack, calling it a blatant case of favoritism towards the Adani Group. Senior leaders allege that:
- Farmers in Pirpainti were pressured into giving up land.
- Compensation was below market rates.
- Nearly 10 lakh trees, including mango and litchi orchards, could be destroyed.
- The deal reflects a “crony capitalist” approach, benefiting a private conglomerate at public expense.
Protests have already been reported in Bhagalpur, with villagers and activists demanding higher compensation and full environmental assessments.
Environmental Concerns
The environmental impact is perhaps the most sensitive part of the controversy. Reports suggest that large orchards and green cover may be cleared for the project. The environmental clearance (EC) process will need to address:
- Compensatory afforestation plans.
- Protection of riverine ecology near the Ganga basin.
- Resettlement and rehabilitation of affected families.
- Air and water pollution safeguards.
As of now, no detailed EC documents are publicly available on official portals. Without them, the scale of ecological loss and the mitigation measures remain uncertain.
Economic and Social Impact
Supporters’ view:
- The project is expected to create thousands of jobs during construction and several thousand direct and indirect jobs once operational.
- Bihar will add a large, reliable power source, reducing blackouts and supporting industries.
- Ancillary businesses — transport, housing, local markets — will benefit.
Critics’ view:
- Displacement of farmers and ecological loss could outweigh benefits.
- High power tariff could mean expensive electricity for consumers.
- Local communities may not see proportionate gains compared to losses of land and livelihoods.
Frequently Asked Questions (FAQs)
1. Is it true Adani got 1,050 acres for ₹1?
Yes, reports of the cabinet decision confirm a nominal lease of ₹1 per year for 33 years. (Source: Toofan Express)
2. Why such a low lease amount?
It’s a symbolic rent under industrial policy to attract investment, but Adani bears full construction cost and supply obligations.
3. Was it a direct allotment?
No, Adani won through a competitive tender floated by BSPGCL.
4. How much will Bihar pay for the power?
The winning bid tariff was around ₹6.075 per unit.
5. Will farmers lose land?
Yes, land acquisition is part of the project. Allegations of coercion exist, but official compensation details aren’t public yet.
6. How many trees will be cut?
Congress claims up to 10 lakh trees. Actual figures will depend on environmental clearance.
7. What’s the size of investment?
Around USD 3 billion (₹25,000 crore).
8. When will the plant be operational?
Timelines depend on construction and clearances; usually 4–6 years for such projects.
9. How many jobs will it create?
Several thousand during construction and operations, though exact numbers aren’t officially confirmed.
10. Where can I verify this officially?
Through BSPGCL tender documents, Bihar cabinet notes, Adani’s BSE filings, and upcoming environmental clearance reports. (Source: Toofan Express)
Conclusion
The controversy over Bihar leasing 1,050 acres to Adani Power for ₹1 per year highlights the clash between economic development and political perception. Officially, the deal went through a competitive process, with Adani committing billions in investment and a long-term power supply agreement. But politically, the optics of a “₹1 lease” and allegations of farmer exploitation and ecological damage have turned it into a major flashpoint.
For Bihar, the real test will be whether this project delivers affordable power, fair compensation, jobs, and sustainable development — or becomes another case study in the debate over corporate favoritism vs. public interest.
Report by Toofan Express