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Bihar Power Discoms Profitable, Set for Stock Listing in 3 Years

ENERGY
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AuthorAarav Shah|Published at:
Bihar Power Discoms Profitable, Set for Stock Listing in 3 Years
Overview

Bihar is preparing to list its power distribution companies on stock exchanges within the next two to three years, following a significant profit turnaround. Energy Secretary Manoj Kumar Singh confirmed the plan, citing policy support, political backing, and substantial state investment of ₹75,000 crore over the past decade. The state also aims to develop at least two nuclear power plants.

Profitability Drives Listing Plans

Following two consecutive years of profitability, Bihar's power distribution companies are now on track for a stock market debut. This move aims to use improved revenues to boost financial performance. Energy Secretary Manoj Kumar Singh attributes this turnaround to effective policy implementation, strong political will, and diligent execution on the ground.

Financial Turnaround

North Bihar Power Distribution Company (NBPDC) reported a profit of ₹1,338.6 crore for FY25, an increase from ₹1,105.9 crore in FY24. Similarly, South Bihar Power Distribution Company (SBPDC) posted a net profit of ₹744 crore in FY25, a significant jump from ₹63.5 crore the previous year. These figures show a substantial recovery and improved operational efficiency. In a recent ranking of 66 discoms by the power ministry and REC Ltd, NBPDC secured 13th place and SBPDC ranked 24th.

Future Investments and Nuclear Ambitions

The state's ambition extends beyond distribution. Bihar is exploring the development of at least two nuclear power plants, with NTPC and Nuclear Power Corporation conducting surveys in Nawada, Banka, and Siwan districts. The state government is committed to facilitating these projects by ensuring land and water availability. This aligns with the central government's 2024 advisory for states to consider listing power sector entities, starting with transmission companies, to secure funding for future investments. Bihar is also appointing a merchant banker to facilitate the listing of Bihar Power Transmission Company in FY27.

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