New Delhi, Sep.27,2025:The Adani Power Plant Bihar Land Deal has erupted as one of the most controversial political and economic debates in recent times. The Bihar government has leased nearly 1000 acres of land in Bhagalpur’s Pirpainti area to Adani Power Limited for a mere ₹1 annual rent. The lease, valid for 25 years, is meant for setting up a massive 2400 MW thermal power plant–
While the government insists the move follows due process under tariff-based competitive bidding, opposition parties including the Congress, RJD, and CPI(ML) have accused the ruling government of handing over public land at throwaway rates to billionaire Gautam Adani’s group. The controversy has not only raised political tempers but also triggered environmental and social concerns across the state.
How the Controversial Lease Came Into Existence
In February 2025, the Bihar government announced plans to establish a 2400 MW thermal power plant in Bhagalpur’s Pirpainti block. To ensure transparency, the state opted for tariff-based competitive bidding.
On July 16, 2025, Adani Power Limited emerged victorious in the online auction with a lowest tariff bid of ₹6.075 per unit of electricity. Competitors such as Torrent Power, Lalitpur Power, and JSW Energy had quoted higher tariffs, ranging between ₹6.145 and ₹6.205.
Just weeks later, on August 5, 2025, the Bihar state cabinet approved the decision to lease nearly 1000 acres of fertile land to Adani Power at a symbolic rent of ₹1 per year for 25 years. This decision, however, immediately became a flashpoint in Bihar’s already polarized political climate.
Political Backlash Over the Adani Land Deal
The Adani Power Plant Bihar Land Deal has been fiercely opposed by opposition parties. Leaders from the Congress, RJD, and CPI(ML) have labelled it as an example of “corporate favouritism” and “land grab under the guise of development.”
They argue that while farmers and small businesses struggle to access land at affordable rates, a billionaire industrialist has been granted thousands of acres for virtually free. Opposition leaders are demanding a rollback of the decision, citing that public assets should not be transferred at token amounts.
The ruling BJP-JD(U) alliance, however, defends the move, stating it is a strategic investment for Bihar’s power security and will bring employment opportunities and infrastructure growth to Bhagalpur district.
Environmental Concerns and Tree Felling Issue
Apart from the political storm, environmentalists have raised alarms about the large-scale felling of mango orchards and other trees in Pirpainti to make way for the project. The lush green mango belts of Bhagalpur are considered part of the region’s ecological heritage and a source of livelihood for many farmers.
Experts warn that clearing nearly 1000 acres of fertile and green land could have long-term environmental impacts, including:
- Loss of biodiversity
- Impact on soil fertility
- Potential rise in local temperatures
- Reduced carbon sequestration
These concerns remain unaddressed, as the government continues to push forward with the project citing power shortage concerns in Bihar.
What the Government Says About the Lease
The Bihar government has clarified that the Adani Power Plant Bihar Land Deal followed standard competitive bidding procedures. Officials argue that since Adani Power quoted the lowest tariff, it was natural for the company to win the project.
They also emphasize that leasing land at a nominal rate is a common practice in mega infrastructure projects where governments seek private investment to boost state capacity.
A senior state official said, “The lease is not a land sale. Ownership remains with the state, and the project is expected to generate employment, local development, and improved electricity supply.”
Adani Group’s Silence and Media Queries
Interestingly, the Adani Group has so far remained silent on the matter. Multiple attempts by media organizations to seek a response have not yielded any official comment.
This silence has further fuelled speculation, with critics alleging that the company is avoiding public scrutiny over the controversial lease terms.
Voices of Locals in Pirpainti, Bhagalpur
Ground reports from Pirpainti reveal a mixed sentiment among locals. While some villagers welcome the possibility of jobs and better infrastructure, others are worried about:
- Losing access to fertile agricultural land
- Displacement and relocation issues
- Environmental degradation
- Disruption of traditional livelihoods like mango farming
One farmer was quoted saying, “We don’t know if jobs will actually come to us. What we do know is that our land and trees are being taken away.”
Legal and Policy Aspects of the Land Transfer
The Adani Power Plant Bihar Land Deal also brings into question the legal framework of land leases in India. While states have the right to lease public land for industrial projects, the token rent clause often attracts criticism.
Experts highlight that such leases should come with strict environmental safeguards, employment guarantees, and local benefit-sharing mechanisms. Without these, they risk being seen as corporate handouts rather than genuine development policies.
Opposition Demands and National Impact
The controversy has now spilled onto the national political stage. Leaders from across India are citing this as another example of alleged “crony capitalism” benefiting large business houses.
The opposition has demanded:
- A judicial inquiry into the land deal
- Transparency in bidding and lease terms
- Environmental impact assessment reports to be made public
- Job guarantees for local residents
If the agitation grows, the Adani Power Plant Bihar Land Deal could become a major electoral issue in upcoming state and national polls.
The Road Ahead for Adani Power Plant Bihar Land Deal
The Adani Power Plant Bihar Land Deal encapsulates the deep tension between development and accountability in India’s governance model. On one hand, Bihar urgently needs additional power capacity to fuel its growth. On the other, granting fertile land at ₹1 lease for 25 years to a corporate giant raises genuine concerns about fairness, transparency, and environmental sustainability.
