Last week, the Bihar Congress organized a protest march from its Patna office at Sadakat Ashram to Dr. Rajendra Prasad’s memorial at Bans Ghat, in opposition to the Bihar government's decision to lease 1,050 acres of land in Bhagalpur to the Adani Group at a token rate of ₹1 per year for setting up a thermal power plant.
Key Points of the Protest:
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Land Deal: Congress argues that leasing 1,050 acres of fertile agricultural land to Adani for such a nominal rate is a “gift” to the corporation.
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Environmental Concerns: Allegations include the cutting of 10 lakh trees for the project, which Congress claims would have significant environmental repercussions.
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Farmland Conversion: The Congress has also raised concerns over the reclassification of fertile agricultural land as barren land to facilitate the project.
What is the Pirpainti Thermal Power Plant?
The Pirpainti Thermal Power Plant is a 2,400-MW coal-fired project being developed by Adani Power Limited in Bhagalpur. The project represents the largest private-sector investment in Bihar, valued at $3 billion, and will create up to 12,000 jobs during construction and about 3,000 permanent jobs once operational.
Congress’s Allegations:
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Token Land Transfer: The 1,050 acres have been leased to Adani for just ₹1 per year for 33 years, which Congress claims is highly preferential.
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Environmental Damage: Congress alleges that the plant will lead to the cutting of 10 lakh trees and the destruction of the ecosystem.
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Farmland Misuse: Congress asserts that fertile land is being wrongly declared barren to facilitate the project’s land acquisition.
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Expensive Power: The Congress points out that electricity generated from this thermal plant will cost ₹6.075 per unit, which is much higher than the rates in other states.
Government’s Defense:
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Transparent Process: Bihar Industries Minister Nitish Mishra rejected the allegations, stating that the project followed a transparent bidding process and was crucial for the state's development.
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Land Deal: The state government clarified that the land was leased at ₹1 per year to Bihar State Power Generation Company (BSPGCL) in 2022, before the bidding process. The token rate was intended to reduce power generation costs, while the ownership of the land remains with the Bihar government.
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Policy Precedent: The policy offering land at ₹1 to large investors is not unique to Adani. It’s part of Bihar’s broader investment policy to attract industrial development and create jobs.
Environmental Concerns:
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The government clarified that although 10,055 trees were counted, only those within the power plant and coal handling areas (300 acres) will be cut. Additionally, the state will implement a compensatory afforestation plan to develop a green belt on 100 acres.
How Adani Won the Project:
- The Pirpainti Power Plant is part of a series of efforts that began over a decade ago but faced multiple delays due to corruption scandals and protests from farmers. The government stated that Adani won the project through a competitive bidding process as per Section 63 of the Electricity Act.
What About the Re 1 Land Transfer?
- The Re 1 lease rate is part of the state’s broader industrial investment policy. In 2025, the Bihar cabinet approved the “Bihar Industrial Investment Promotion Package,” offering land at a token rate of ₹1 for investors who meet specific criteria, including job creation and investment amounts.
Is This a Common Practice?
- No, this land deal isn’t unique to Adani. Under Bihar’s investment promotion policy, land at token rates is available to various investors, including large corporations, based on their investment and job creation commitments.
Power Pricing Concerns:
- The government defended the cost of thermal power, stating that while renewable energy costs ₹3–₹3.50 per unit, it is inconsistent because of weather conditions. In contrast, thermal power, although more expensive, is always available, leading to higher costs.
Similar Controversies in Other States:
- Adani’s land acquisition efforts have faced opposition in other states as well. For example, in Jharkhand’s Godda, there have been allegations of forced land acquisition and police intimidation during the construction of a 1,600 MW thermal power plant.
Political Context:
- This issue has emerged just ahead of Bihar’s Assembly elections. Congress claims that the “gifts” to Adani are part of a pattern where the government rewards the Adani Group when facing electoral setbacks. The BJP counters by accusing Congress of obstructing Bihar’s development.
Land Acquisition Process:
- The land acquisition for the Pirpainti project involved acquiring 988.335 acres of private land, affecting 919 landowners. The compensation process involved both the older 1894 Land Acquisition Act and the newer 2013 Act, leading to variations in compensation amounts for different landowners.
Conclusion
The controversy surrounding the Pirpainti thermal power plant project highlights the tension between developmental initiatives and environmental, economic, and political considerations. As the project progresses, it is likely to continue fueling debates over the sustainability of large-scale industrial projects in sensitive areas and the role of government policies in balancing development and public welfare.
