The Bihar State Power Generation Company Limited (BSPGCL) has signed Memorandum of Understanding (MoUs) with two private developers for the development of 2,120 MW of pumped storage projects in Bihar, marking a significant step toward strengthening the state’s energy security and renewable energy integration.
The MoUs were signed in the presence of Chief Minister Shri Nitish Kumar, Deputy Chief Ministers Shri Samrat Choudhary and Shri Vijay Kumar Sinha, Energy Minister Shri Bijendra Prasad Yadav, and Water Resources Minister Shri Vijay Kumar Chaudhary, along with senior state officials and power sector leadership.
The agreements have been executed under Bihar’s recently implemented Pump Storage Policy-2025, which aims to enhance grid stability, manage peak electricity demand, and enable large-scale integration of renewable energy. Under the policy, BSPGCL has selected GreenCo Energies Pvt. Ltd. and Sun Petrochemicals Pvt. Ltd. to develop pumped storage projects in the hilly regions of Nawada district, where natural elevation differences are suitable for such infrastructure.
GreenCo Energies will develop a 1,200 MW pumped storage project at Ekamba village, while Sun Petrochemicals will set up a 920 MW facility at Gosaitari village. Together, the two projects will add 2,120 MW of energy storage capacity to Bihar’s power system. The projects will use off-stream and closed-loop systems, storing water from the Dhanerjay and Sakri rivers during the monsoon season, a technology designed to avoid adverse impacts on the natural flow of rivers while supporting grid stability.
The MoU for the GreenCo project was signed between Shri Mahendra Kumar, IAS, Managing Director, BSPGCL, and Mr. Anil Kumar Chalamalasetty, Founder, CEO & Managing Director of GreenCo Energies. The agreement for the Sun Petrochemicals project was signed between Chief Engineer Dilip Kumar and Mr. Jimmy Desai, Executive Director, Sun Petrochemicals.
The two projects are expected to attract a combined investment of approximately ₹13,000 crore, with GreenCo Energies investing ₹7,800 crore and Sun Petrochemicals investing ₹5,200 crore. During the construction phase, the projects are expected to generate employment for around 8,000 people. Both projects will be developed by the selected agencies at their own expertise and are targeted for completion within three years, with BSPGCL providing all necessary support.
Addressing the occasion, Shri Nitish Kumar, Chief Minister said, “These projects will enhance the state’s energy security and self-reliance.”
He added that electricity generation capacity and grid stability in Bihar would increase, particularly by balancing intermittent renewable energy sources such as solar and wind, marking a major milestone in the state’s energy sector.
Shri Bijendra Prasad Yadav, Energy Minister said, “Under the visionary leadership of Chief Minister Nitish Kumar, the energy department is committed to providing uninterrupted and clean electricity to the people and industries of Bihar. There has been no electricity consumption problem in the state for the past five years.”
He further appealed to investors to explore opportunities in Bihar’s energy and industrial sectors and noted that the pumped storage projects would play a key role in employment generation and contribute toward achieving India’s Net Zero emissions target of 2070.
The pumped storage initiative under the Pump Storage Policy-2025 is expected to position Bihar as a technically advanced and self-reliant state in the evolving renewable energy landscape, while supporting renewable energy integration, peak demand management, grid stability, and more competitive electricity tariffs for consumers.
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