BSPGCL awarded the LoA to APL on behalf of North Bihar Power Distribution Company (NBPDCL) and South Bihar Power Distribution Company (SBPDCL), the two state utilities. This would be followed by signing of the Power Supply Agreement (PSA) between the entities.

India's power demand is expected to grow rapidly in the coming years, with peak demand rising from current ~250 GW to ~400 GW by 2031-32, and 700+ GW by 2047, propelled by rapid industrialization, urbanization, and a growing population. Thermal power, with its inherent ability to provide large-scale, reliable, and round the-clock power, will continue to remain the backbone of our energy security, providing critical base-load and grid balancing support. To meet this ever-increasing power demand, government has envisaged an additional ~100 GW of thermal capacity to be added by 2035.