Former Union Power Minister and senior BJP leader R. K. Singh has levelled serious allegations against the Nitish Kumar-led NDA government in Bihar, claiming a potential loss of around ₹62,000 crore to the state exchequer in the award of the 2,400 MW Pirpainti Thermal Power Project in Bhagalpur. The project, awarded to Adani Power, has triggered a fresh political storm amid the ongoing Assembly elections in the state.

Singh questions project valuation and tariff

In an interview with The Indian Express, Singh said the Pirpainti project had been valued at around ₹24,900 crore when he was the Union Power Minister, at an estimated ₹10 crore per megawatt. However, he alleged that the project was later awarded at a much higher rate of ₹15 crore per megawatt.

“The price of electricity, based on ₹10 crore per MW capital cost, came to about ₹2.75 per unit. But the current agreement fixes it at ₹4.16 per unit. This would mean an additional annual burden of ₹2,500 crore, and over 25 years, a total projected loss of ₹62,000 crore,” Singh claimed.

He added that he had raised the matter with the Nitish Kumar government but received no response. “If I am wrong, they should clarify. But from my seven years of experience as Union Power Minister, I can say with responsibility that this project requires a thorough review,” Singh said.

Adani Power denies allegations, cites transparent process

In response, Adani Power called Singh’s allegations “entirely unfounded” and said they “reflect a misunderstanding of both the project’s history and the transparent process followed by the Government of Bihar.”

“It is unfortunate that certain electorally frustrated individuals and political interests are attempting to further a false and baseless narrative,” the company said in a statement.

According to Adani Power, the Pirpainti project had been stalled since 2012, when land was first acquired by the Bihar State Power Generation Company Ltd. Over the last decade, several attempts were made to implement the project with public sector entities, but none succeeded. The government finally opted for a competitive bidding process in 2024, which the company said was conducted transparently.

Adani Power clarified that the land for the project was leased, not sold, under the Bihar Industrial Investment Promotion Policy, 2025, and that it had emerged as the lowest bidder. The firm quoted a tariff of ₹6.075 per kilowatt-hour, comprising ₹4.165 as fixed charge and ₹1.91 as fuel charge.

Political rift within BJP widens

Singh, 72, who lost the 2024 Lok Sabha election from Arrah on a BJP ticket, has been at odds with the party leadership since his defeat. He denied that his allegations were politically motivated or linked to his exclusion from the BJP’s Bihar poll campaign committee.

“This has nothing to do with elections or my relations with the party. They can even suspend or expel me if they wish. I am speaking only on matters I understand well,” Singh said, adding that energy experts had recently alerted him about the issue.

He also alleged that during his tenure as Union Power Minister, certain BJP leaders had hinted at favouring specific companies in project bids. “But I followed the rule book and did not approve any rigged bidding or inflated project,” he said.

Silence from state government

Bihar Industry Minister Nitish Mishra did not respond to repeated calls or messages seeking comment on the matter.

The allegations come at a politically sensitive time for the NDA government, which has faced questions from opposition leaders over transparency in large-scale infrastructure projects.

Singh’s remarks follow his recent comments asking Deputy Chief Minister Samrat Choudhary and state BJP chief Dilip Jaiswal to respond to corruption allegations made by Jan Suraaj chief Prashant Kishor or resign from their posts.

Project controversy likely to intensify

Political observers say Singh’s allegations could fuel further tension within the state BJP and the ruling NDA alliance, especially as the Pirpainti project is a flagship initiative for Bihar’s industrial growth.

As the case unfolds, both the government and Adani Power may come under pressure to provide detailed clarifications on project valuation and tariff structure. The controversy is expected to dominate political discourse in the coming weeks.