The first unit of the 2×660-MW Buxar thermal power project in Bihar was virtually inaugurated by Prime Minister Narendra Modi during his visit to the eastern state, on August 22, 2025.
The 1,320-MW Buxar coal-fired power project is being set up by Central PSU SJVN Ltd, through its wholly-owned subsidiary SJVN Thermal Pvt Ltd (STPL).
The ceremony was attended by Governor of Bihar, Arif Mohammed Khan, Chief Minister of Bihar, Nitish Kumar, Union Ministers, Deputy Chief Ministers of Bihar, State Ministers and other prominent dignitaries, a release by SJVN said.
The event was also attended by Pankaj Aggarwal, Secretary (Power), Ministry of Power, Bhupender Gupta, CMD, SJVN, Ajay Kumar Sharma, Director (Personnel), Vikas Sharma, CEO of STPL and other senior officials of SJVN.
Project details
The 1,320-MW Buxar coal-fired power project is located at Chausa in Buxar district, and is equipped with two units of 660-MW running on supercritical technology.
Incidentally, the foundation stone of the project was also laid at the hands of Prime Minister Narendra Modi on March 9, 2019. Equipped with state-of-the-art supercritical technology, the project ensures higher efficiency and reduced environmental impact. With the total investment of Rs.13,756.56 crore, the project aims to generate 9,828.72 MU (million units) of electricity annually, out of which 85 per cent power has been allocated to Bihar under a long-term power purchase agreement.
The project will substantially enhance power availability in Bihar and the Eastern Region, reducing peak-hour shortages and strengthening energy security. Its construction involved the use of around 2.5 lakh tonnes of steel and 2.8 lakh tonnes of cement, the release noted.
Second unit
According to a report by Central Electricity Authority of June 2025, the second unit of 660-MW of the Buxar thermal power project is expected to commence trial runs by December 2025. Larsen & Toubro Ltd is undertaking the main plant works (steam generator and turbine generator) on EPC basis.
Background
The Buxar thermal power project was originally conceived as a Bihar state government project. To this effect, a project SPV “Buxar Bijli Company Pvt Ltd” was formed, promoted by Bihar Power Infrastructure Company Ltd (BIPCL). However, in January 2013, SJVN signed an MoU with Bihar State Power Holding Company Ltd and BIPCL to set up the 1,320-MW Buxar thermal power project. Subsequently, SJVN took over Buxar Bijli Company in July 2013, and renamed it to SJVN Thermal Pvt Ltd in October that year.
Between February 2017 and December 2018, major pre-project work such as land acquisition, securing environmental clearance and coal linkages, building 33kV transmission line for electricity supply during construction, were completed.
The project received investment approval in March 2019 and the project foundation stone was laid in the same month. Contracts for main plant works were formalized in September 2019, followed by the project attaining financial closure in March 2021.
The Buxar power plant is the only thermal power project in SJVN’s current power portfolio that is constituted by hydropower, wind and solar power projects. The Central PSU is also developing hydropower projects in Nepal and Bhutan.
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Featured photograph (source: SJVN) is a file picture of the Buxar thermal power project whilst under construction.