Bihar seeks developers to build pumped storage projects statewide
The Bihar State Power Generation Company Limited (BSPGCL) has invited Expressions of Interest (EOIs) from developers for the establishment of closed-loop off-stream pumped storage projects (PSPs) across Bihar. The utility is seeking proposals for projects at self-identified locations, as part of the state’s efforts to build large-scale energy storage infrastructure to support future renewable energy integration.
The EOI, issued in May 2026, is aimed at identifying technically qualified and financially capable developers. The initiative is aligned with the Central Electricity Authority’s (CEA) National Electricity Plan 2022-32, which identifies pumped storage as a key balancing resource for a power system with increasing renewable energy penetration.
Project requirements
BSPGCL has specified that all proposed projects must adopt a closed-loop off-stream configuration. This requires the development of two independent reservoirs with no direct or indirect linkage to natural river systems.
Only projects with a minimum installed capacity of 25 MW are eligible. Developers will be responsible for identifying suitable sites and undertaking all associated studies and approvals, including topographical surveys, geological and hydrological investigations, land acquisition assessments, and statutory clearances.
The utility clarified that any information shared on potential sites is indicative and should not be considered confirmation of project feasibility.
Existing allocations
The state utility has already allocated two pumped storage projects in Rajaui Block of Nawada district through Memoranda of Understanding (MoUs).
These include the 920 MW / 7,324 MWh Gosaitari Pumped Storage Project and the 1,200 MW / 7,308 MWh Ekamba Pumped Storage Project.
BSPGCL has directed prospective developers to ensure that proposals submitted under the current EOI do not overlap with either of these locations.
Eligibility conditions
Participation is open to companies incorporated under the Companies Act, 1956 or 2013. Partnership firms, limited liability partnerships (LLPs) and unincorporated entities are not eligible. Alternative Investment Funds (AIFs) registered with the Securities and Exchange Board of India (SEBI) may participate independently or as members of a consortium.
Financial eligibility criteria require bidders to maintain a net worth of at least 100% of their paid-up share capital, subject to a minimum of Rs 1 crore per MW of quoted capacity. Bidders must also demonstrate an average annual turnover of at least Rs 1 crore per MW over the previous three financial years.
Technical qualification requirements can be met through prior experience in commissioning thermal or hydro projects of equivalent capacity, renewable energy projects with cumulative capacity matching the proposed project size, or infrastructure projects such as dams, tunnels, metro systems, roads and reservoirs with costs equal to or greater than Rs 1 crore per MW of the quoted capacity.
Consortia are permitted to participate. However, the lead member must hold at least 51% of voting rights and paid-up share capital, while each consortium member must hold a minimum of 26%.
Submission process
Developers are required to submit their proposals online through the state’s e-procurement portal by 18:00 hours on July 1, 2026. The processing fee has been fixed at Rs 10,000, excluding applicable GST.
Each submission must include a Pre-Feasibility Report (PFR) covering technical specifications, reservoir characteristics, environmental considerations and cost estimates. Shortlisted bidders will subsequently be invited to make detailed presentations before BSPGCL and submit KMZ or KML files identifying project boundaries and reservoir locations.
Allocation framework
In cases where multiple developers propose projects at the same location, BSPGCL will accord preference to state and central public sector undertakings over private sector bidders.
Among private developers, preference will be determined first on the basis of higher energy storage capacity measured in MWh and subsequently by higher instantaneous generation capacity in MW.
Selected developers will be required to pay facilitation charges of Rs 50,000 per MW of allocated capacity, plus GST, subject to a cap of Rs 50 lakh per project.
Support and incentives will be extended in accordance with the Bihar Pumped Storage Promotion Policy-2025 and the Bihar Renewable Energy Policy-2025.
Power offtake
The EOI provides a pathway for long-term power procurement by state utilities. Following approval of the Detailed Project Report (DPR), selected developers will receive a Letter of Offer requiring them to offer at least 80% of project capacity to the Government of Bihar.
The state government will have a Right of First Refusal and must communicate its decision within eight weeks.
For capacity procured by Bihar’s distribution companies, tariffs will be determined by the Bihar Electricity Regulatory Commission under Section 62 of the Electricity Act, 2003.
Timeline
The pre-submission meeting for the EOI was scheduled for June 10, 2026, while the last date for submitting queries was June 9, 2026.
The deadline for submission of proposals is July 1, 2026, at 18:00 hours, with opening of bids scheduled for July 2, 2026, at 16:00 hours.
EOI submissions will remain valid for 180 days. Developers shortlisted through the process will execute MoUs with BSPGCL before proceeding to the DPR stage.
The featured photograph is for representation only.
