Bihar plans BSPTCL IPO, eyes first state transmission listing

The Bihar government is preparing to list Bihar State Power Transmission Company Limited (BSPTCL) on the National Stock Exchange (NSE), which would make it the first state-owned transmission utility in India to go public. Bihar Energy Secretary Manoj Kumar Singh stated this in a video interview with PTI. The state has issued an Expression of Interest (EoI) to appoint merchant bankers, and the issue size will be finalised after their selection.

BSPTCL has reported profits for over a decade. In the financial year 2024-25, it posted a total income of Rs 1,968 crore and a profit after tax of Rs 286 crore. Proceeds from the initial public offering (IPO) are expected to fund a Rs 16,194 crore expansion plan covering network capacity additions, intra-state transmission corridor upgrades, substation improvements, and high-voltage line upgrades aimed at reducing losses and supporting renewable energy integration.

The timing of the proposed listing reflects a significant step-up in Bihar’s power demand. The state’s peak demand reached approximately 8,800 MW in 2024-25, against a peak met of 7,852 MW, leaving a gap of 226 MW, according to the Central Electricity Authority’s (CEA) Resource Adequacy Plan for Bihar covering the period 2025-26 to 2035-36. Bihar’s energy demand and peak demand have grown at a compound annual growth rate of 6.76% and 7.74% respectively over the past five years. The CEA study, based on projections furnished by Bihar State Power Holding Company Limited (BSPHCL), projects peak demand to reach 15,233 MW by 2035-36, growing at a CAGR of 5.55% over the decade. To meet this reliably, the state will need to contract a total capacity of approximately 35,861 MW by 2035-36, including 13,025 MW of solar, 5,281 MW of wind, and 5,290 MW of storage through pumped hydro or battery energy storage systems.

Singh indicated that the government may consider listing North Bihar Power Distribution Company Limited (NBPDCL) and South Bihar Power Distribution Company Limited (SBPDCL) at a later stage, contingent on BSPTCL’s revenue stabilisation after the IPO. In 2024-25, NBPDCL reported a total income of Rs 17,448 crore and a profit after tax of Rs 1,339 crore, while SBPDCL posted a total income of Rs 19,108 crore and a profit after tax of Rs 665 crore.

The featured photograph is for representation only.