Ranchi: In a bid to bridge the constant problem of power shortage in the state, the Bihar Electricity Board on Monday signed an agreement (PPA) with the Jharkhand unit of power firm ESSAR Energy.

Under the deal, the Chandwa Plant of ESSAR will provide 300 mega-watts of power to the state.

N K Jha, Director, Bihar Electricity Board; R P Choudhary, Chief Engineer and  A K Singh, CEO, ESSAR Energy were among the signatory members.

The Chandwa Plant of ESSAR Energy will start production from January 2014.

Presently, 500 mega-watts of electricity requirement in Jharkhand are recouped by the Chandwa Plant of the energy firm.

Earlier, Bihar had signed a deal to purchase 450 mega–watts of electricity with the firm.