Billionaire Gautam Adani will invest $3 billion to build and operate a 2,400 MW coal power generation plant in the eastern state of Bihar as his port-to-energy conglomerate continues to expand across businesses in the domestic market.

Adani Power Ltd. won a tender from Bihar State Power Generation Co. with a bid of 6.075 rupees ($0.07) per unit, the lowest, in a “tightly contested process,” the company said in a statement Thursday. The power unit of Adani Group will get coal allocation from government to fuel the plant that will help the utility move closer to its aim of doubling generation capacity by 2030.

The decision to build the fossil fuel-based power plant comes ahead of a election in Bihar state, seen crucial for the fate of Prime Minister Narendra Modi’s coalition government. Adani, who is seen being close to Modi’s party that is looking to retain power in the state, has revived investment-fueled growth after being weighed down by a US legal probe last year.

“We will set up a new greenfield plant with an investment of $3 billion, which is expected to further aid industrialization in the state,” said S.B. Khyalia, Chief Executive Officer of Adani Power. The plant will be a “low-emission ultra-supercritical one, and will supply dependable, competitively priced power to the state,” he added.

Coal remains a key fuel for power plants in India, accounting for nearly three-quarters of generation in the world’s third biggest emitter, even as the country is adding massive renewable energy capacity spanning solar, wind and nuclear. Clean power generation capacity, including large hydropower and nuclear, surpassed that of fossil fuels in India this year.

The south Asian nation plans to install 500 gigawatts of non-fossil electricity by the end of the decade, yet the dramatic boom in renewable energy installations hasn’t been adequate to feed the burgeoning demand. That has prompted the government to double down on coal power with a plan to add nearly 90 gigawatts of capacity over the next decade.

Under the contract, the thermal power project to be developed at Pirpainti in Bhagalpur district will supply 2,274 MW power to North Bihar Power Distribution Co and South Bihar Power Distribution Co.

The first unit of the plant — to be set up under the design, build, finance, own, and operate or DBFOO model — will start operating within 48 months, the company said.

Adani Group recently bolstered its war chest by selling stake in AWL Agri Business and is seeing funding pressures ease. The group is ramping up its bets in renewable energy, with arm Adani Green Energy Ltd. recently surpassing 15,000 megawatts of operational capacity. This makes it the fastest and largest capacity addition in India to date. The company has an ambitious goal of reaching 50,000 MW by 2030.

Adani Power shares recovered to trade flat in Mumbai on Thursday after falling as much as 2% earlier.