US power major to invest in Bihar

Bringing good news to power crisis-plagued Bihar after majority of thermal power units fell on the Jharkhand side after the bifurcation in November 2000, US energy major AES Corporation has evinced interest in setting up a thermal power plant in the state.

The AES corporation has submitted a proposal to State Industrial Promotion Board (SIPB) for setting up the thermal power plant at Jagidishpur in Bhagalpur district, Principal Energy Secretary Ravikant said.

He said AES (India) Private Limited has submitted a letter of 'expression of interest' (EOI) to the SIPB for setting up the plant with an investment of around Rs 8,000 crore (Rs 80 billion).

In its offer letter to the SIPB, the US energy giant said that if the company was allowed to set up its power generating unit, the state government could expect foreign direct investment (FDI) of up to $500 million.