The Bihar government is considering listing its power distribution companies (discoms) on stock exchanges within the next two to three years, as part of efforts to strengthen the state’s power sector finances and attract investment. The development was confirmed by the state’s energy secretary, Manoj Kumar Singh.
Improved Financial Performance Drives Listing Plans
The move follows a notable financial turnaround in Bihar’s discoms, which have reported profits over the past two years. According to Singh, the listing will be pursued after further strengthening revenue streams and operational efficiency.
“Bihar government has invested ₹75,000 crore apart from centrally sponsored schemes in the last 10 years,” he said, attributing the improvement to consistent policy support, political backing, and effective execution.
In FY25, North Bihar Power Distribution Company (NBPDC) made a profit of ₹1,338.6 crore, up from ₹1,105.9 crore in FY24. At the same time, South Bihar Power Distribution Company (SBPDC) made a profit of ₹744 crore in FY25, up from ₹63.5 crore in FY24. This shows that their operations were much more profitable.
Ranking and Consumer Base Overview
In the latest ranking released by the power ministry and REC Ltd, which assessed 66 discoms nationwide, NBPDC secured the 13th position, while SBPDC ranked 24th.
Out of Bihar’s total 22.2 million electricity consumers, around 62.6% are served by NBPDC, with the remaining consumers covered by SBPDC.
Alignment with Centre’s Policy Push
The state’s plan aligns with the central government’s 2024 advisory encouraging states to list power sector entities, particularly transmission companies, to meet growing investment requirements. In line with this, Bihar is in the process of appointing a merchant banker to facilitate the listing of Bihar Power Transmission Company, targeted for FY27.
Exploring Nuclear Power Development
In addition to strengthening its distribution sector, Bihar is also exploring opportunities in nuclear energy. Surveys are currently being conducted by NTPC and Nuclear Power Corporation in districts such as Nawada, Banka, and Siwan.
“We are very hopeful that at least two nuclear power projects will come up in Bihar,” Manoj Kumar Singh said, adding that the state government will provide support in terms of land and water availability.
The proposed listing and parallel infrastructure developments indicate Bihar’s broader strategy to modernise its power sector, enhance financial sustainability, and meet rising energy demand.
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