Government signs Rs13,000 crore MoUs for Nawada power projects

Patna: In a move to bolster the state’s energy infrastructure, the Bihar State Power Generation Company Ltd (BSPGCL) on Tuesday signed two memorandums of understanding (MoUs) with private developers. The agreements aim to establish pumped storage power projects with a combined capacity of 2,120MW in Nawada district, involving a proposed investment of Rs 13,000 crore.

GreenCo Energies Pvt Ltd is set to develop a 1,200MW pumped storage project in Ekamba village with an estimated investment of Rs 7,800 crore, while Sun Petrochemicals Pvt Ltd will undertake a 920MW project in Gosaitari village, costing approximately Rs 5,200 crore.




An energy department official said, “The two projects are expected to generate around 8,000 jobs during the construction phase and significantly enhance the state's capability in peak demand management and renewable energy integration, which could help moderate power procurement costs over the long term.”

The MoUs were signed in the presence of CM Nitish Kumar, energy minister Bijendra Prasad Yadav, and senior officials. These projects are part of the Bihar Pump Storage Project Promotion Policy, 2025, aimed at strengthening energy security, increasing storage capacity, and facilitating renewable energy integration.

The hilly terrain of Nawada district, with its natural elevation differences, is deemed ideal for these pumped storage projects. The GreenCo project is expected to have an energy storage capacity of 7,308 megawatt hours (MWh), while the Sun Petrochemicals project will offer 6,973 MWh, totalling a combined capacity of 14,281MWh.

Nitish said, “These projects will enhance the state’s energy security and self-reliance.” He added that pumped storage is crucial for grid stability as renewable energy capacity grows.

Energy minister Yadav reiterated the state’s commitment to clean and reliable power, inviting investors by highlighting Bihar’s conducive environment for industrial and infrastructure investment. He added, “The two projects will not only help meet the state’s growing electricity needs but will also be an important step towards achieving India’s net zero emission target of 2070.”

These MoUs represent the first major investment agreements under the Pump Storage Project Promotion Policy, 2025, and are part of Bihar's broader strategy to attract significant capital expenditure in the power and renewable energy sectors.