NTPC's Power Generation Expansion:

Projects, Budgets, and Material

Demands
1. Executive Summary
NTPC Limited, India's preeminent integrated power utility, is embarking on an ambitious
expansion trajectory, strategically balancing the growth of its conventional thermal capacity with
a significant acceleration in renewable energy deployment. The company's long-term vision
aims to nearly double its current installed capacity of over 77 GW (as of March 2025) to a
formidable 130 GW by 2032. A cornerstone of this strategy is the aggressive push towards
green energy, targeting 60 GW of renewable energy capacity within the same timeframe.
Currently, a substantial 21,029 MW of power generation capacity is under active construction
across India. This pipeline is diversified, comprising 9,560 MW from coal-fired projects, 2,255
MW from hydro projects, and a significant 9,214 MW from renewable energy sources.
Financially, NTPC has committed substantial capital, with an estimated ₹27,000 crore allocated
for conventional capacity additions and a noteworthy ₹75,000 crore earmarked for non-fossil
capacity additions by Fiscal Year 2030. Furthermore, the company is actively exploring new
frontiers, including a 2.8 GW nuclear power project under consideration, with an approximate
cost of ₹42,000 crore.
This extensive construction pipeline translates into considerable material demands. For the
renewable energy sector, specifically solar power, a quantitative estimation reveals a
requirement of between 322,490 and 414,630 tonnes of steel for the currently
under-construction solar capacity alone. While precise per-megawatt steel consumption
benchmarks for thermal and hydro projects are not explicitly detailed in the available
information, their inherent material intensity suggests substantial, albeit less transparent,
demand for steel and other construction materials. NTPC's comprehensive expansion strategy
underscores its critical contribution to India's energy security and transition, simultaneously
driving significant demand across various industrial supply chains.

2. NTPC's Strategic Vision and Capacity Targets

NTPC holds a pivotal position in India's energy landscape, functioning as the nation's largest
integrated power utility and fulfilling approximately one-fourth of the country's total power
requirements. The company's fundamental commitment revolves around providing uninterrupted
and affordable power, extending its reach to the farthest corners of the country. This core
mission underpins its ambitious growth strategy.
The company has formulated a robust long-term Corporate Plan aiming to achieve a total
installed capacity of 130 GW by 2032. A defining characteristic of this plan is the aggressive
pursuit of renewable energy (RE), with a specific target of 60 GW of RE capacity by the same
year. This represents a substantial increase from its current operational RE capacity, which is
over 3 GW, and the 12 GW already under implementation. The scale of this renewable energy
target indicates a profound rebalancing of NTPC's energy portfolio, moving beyond its historical
reliance on thermal generation.
Beyond traditional power generation, NTPC is actively diversifying its operations into new and
emerging energy sectors. This includes ventures into Green Hydrogen, Waste to Energy,
Battery Storage solutions, and Nuclear Energy. The company has also demonstrated its
expanding scope by participating in bids for power distribution in Union Territories. This broader
engagement positions NTPC as a multifaceted energy conglomerate.
The strategic direction adopted by NTPC is closely aligned with India's national energy transition
goals and global climate commitments. The company was the first energy entity to declare its
Energy Compact Goals as part of the UN High-level Dialogue on Energy (HLDE) and is actively
collaborating with NITI Aayog on the Net Energy Zero effort. This alignment signifies a proactive
approach to future energy security, aiming to mitigate risks associated with fossil fuel price
volatility and evolving environmental regulations. The explicit financial commitments and
capacity targets for non-fossil fuels provide concrete evidence of NTPC's dedication to its green
energy objectives. This is not merely a stated ambition but a financially backed strategy, which
will drive significant demand for renewable energy components, project development expertise,
and green financing solutions. It also implies a reduced long-term financial exposure to
carbon-intensive assets.

3. Ongoing Construction Projects (Under

Implementation)
NTPC is currently engaged in a substantial construction pipeline, with a total of 21,029 MW of
capacity under implementation, as detailed in its July 2024 investor presentation. This figure
provides a comprehensive breakdown by fuel mix and ownership, offering a clear picture of the
company's immediate expansion efforts.
The under-construction capacity is strategically diversified across various fuel types:
●​ Coal-based projects account for 9,560 MW, with 8,240 MW utilizing Ultra Super Critical
technology and 1,320 MW employing Super Critical technology. These advanced
technologies aim to enhance efficiency and reduce emissions compared to older thermal
plants.
●​ Hydroelectric projects contribute 2,255 MW to the current pipeline.
●​ Renewable energy (RE) projects represent a significant portion, with 9,214 MW under
construction.
In terms of ownership, the distribution of these projects highlights NTPC's collaborative
approach to development:
●​ NTPC (Owned) projects comprise 7,595 MW of the total.
●​ Joint Ventures (JV) and Subsidiary companies are responsible for a larger share, with
13,434 MW under construction. This signifies that approximately 64% of the current
construction pipeline is being executed through collaborative models. This high proportion
indicates a deliberate strategy by NTPC to leverage external capital, specialized
expertise, and potentially share risks associated with large-scale project development.
This model allows NTPC to expand its footprint and achieve ambitious capacity targets
more rapidly than if it relied solely on internal resources. It also suggests a mature
approach to project financing and execution, potentially optimizing capital allocation and
de-risking individual project exposures. For external partners, it highlights opportunities for
collaboration with a leading public sector utility.
Specific major thermal and hydro projects currently under construction, as listed on NTPC's
"Future Capacity Additions" page, include:
Table 1: NTPC's Major Projects Under Construction (Thermal & Hydro)
No. Project Name Type State Capacity (MW) Ownership
1 Tapovan Hydro Uttarakhand 520 NTPC
Vishnugud
2 Lata Tapovan Hydro Uttarakhand 171 NTPC
3 Rammam Hydro West Bengal 120 NTPC
4 TTPP-III Thermal Odisha 1320 NTPC
5 Lara-II Thermal Chhattisgarh 1600 NTPC
6 Singrauli-III Thermal Uttar Pradesh 1600 NTPC
7 Darlipali-II Thermal Odisha 800 NTPC
8 Sipat-III Thermal Chhattisgarh 800 NTPC
9 Telangana Thermal Telangana 2400 NTPC
Stage II
10 New Nabi Thermal Bihar 2400 NTPC
Nagar, Stage-II
11 Gadarwara Thermal Madhya 1600 NTPC
Stage II Pradesh
12 Patratu Thermal Jharkhand 2400 JV & Sub.
Companies
13 Khurja-THDC Thermal Uttar Pradesh 660 JV & Sub.
Companies
14 Tehri Hydro Uttarakhand 750 JV & Sub.
PSP-THDC Companies
15 Pipalkoti-THDC Hydro Uttarakhand 444 JV & Sub.
Companies
Total 17,585
Source:
While the "Future Capacity Additions" page does not explicitly list specific solar projects under
construction, NTPC's commitment to renewable energy is evident through various
commissioning announcements. For instance, the 245 MW Nokh Solar PV Project in Rajasthan
was declared commercially operational on March 26, 2025. Similarly, the 320 MW Bhainsara
Solar PV Project in Jaisalmer, Rajasthan, has seen its capacities commissioned in phases, with
the first 160 MW operational by September 2024, followed by 60 MW in January 2025 and the
final 100 MW in March 2025. The Shajapur Solar Project in Madhya Pradesh (105 MW) also
had its first part capacity of 55 MW declared commercially operational in November 2024, with
the second and last part of 50 MW in March 2025. Furthermore, the 300 MW Shambu ki Burj-2
Solar PV Project in Rajasthan reached full commercial operation by March 2025, with its phases
commissioned since September 2022. These examples underscore the active development and
rapid commissioning of solar capacity, contributing to the overall RE capacity under
construction.

4. Upcoming Projects (Under Planning)

Looking ahead, NTPC has a substantial pipeline of projects under planning, totaling 15,200 MW.
This forward-looking portfolio outlines the company's strategic direction for future capacity
additions.
The planned capacity is also structured with a significant emphasis on joint ventures and
subsidiaries:
●​ NTPC (Owned) projects account for 3,200 MW of the planned capacity.
●​ Joint Ventures (JV) and Subsidiary companies are slated to develop a much larger
share, with 12,000 MW under planning. This indicates that approximately 79% of the
future planned capacity will be executed through collaborative models. A comparison
between the "under construction" phase (where JVs/Subsidiaries account for 64% of
capacity) and the "under planning" phase (where they account for 79%) reveals an
increasing trend in NTPC's reliance on these collaborative frameworks for its future
capacity additions. This is not merely a tactic for current projects but appears to be a
foundational strategy for future growth. This suggests that NTPC is further embedding a
collaborative framework into its long-term corporate strategy. This could be driven by
several factors: spreading financial risk for even larger projects, accessing specialized
technologies or regional expertise, navigating complex regulatory environments, or simply
accelerating the pace of development to meet ambitious national targets. It implies that
future engagement with NTPC will increasingly involve navigating its network of
subsidiaries and joint ventures.
Specific major thermal and hydro projects currently under planning include:
Table 2: NTPC's Major Projects Under Planning (Thermal & Hydro)
No. Project Name Type State Capacity (MW) Ownership
1 Lara-III Thermal Chhattisgarh 1600 NTPC
2 TTPP-IV Thermal Odisha 800 NTPC
3 Barauni-III Thermal Bihar 800 NTPC
4 Meja-II Thermal Uttar Pradesh 2400 JV & Sub.
Companies
5 Patratu Stage II Thermal Jharkhand 1600 JV & Sub.
Companies
6 Bhillai Exp. Thermal Chhattisgarh 800 JV & Sub.
Companies
7 BRBCL - II Thermal Bihar 800 JV & Sub.
Companies
8 Jhabua Exp. Thermal Madhya 800 JV & Sub.
Pradesh Companies
9 Obra D TPP Thermal Uttar Pradesh 1600 JV & Sub.
Companies
10 Anpara E Thermal Uttar Pradesh 1600 JV & Sub.
Companies
11 Khurja STPP -II Thermal Uttar Pradesh 800 JV & Sub.
Companies
12 Chhabra Exp. Thermal Rajasthan 1600 JV & Sub.
Companies
Total 15,200
Source:
While the "Future Capacity Additions" list primarily details thermal and hydro projects under
planning, NTPC's aggressive renewable energy targets (60 GW by 2032) imply a substantial
pipeline of solar and other RE projects in various planning stages. This is further substantiated
by recent tenders, such as NTPC Renewable Energy Limited inviting bids for an EPC package
with land for a 300 MW grid-connected solar PV project in Goa , and a tender for the supply of
solar PV modules for a 1200 MW solar PV project in Gujarat. These ongoing tender processes
indicate continuous development and planning for large-scale renewable energy installations,
even if specific project names are not yet listed in the "Projects Under Planning" section of the
corporate website.

5. Projected Capital Expenditure and Budget

Allocation
NTPC's investment strategy is a clear reflection of its dual commitment: maintaining and
optimizing its conventional thermal capacity while aggressively expanding its non-fossil fuel
portfolio. This approach is designed to meet India's growing energy demands while
simultaneously aligning with national decarbonization goals.
Based on the 20th Analysts & Investors Meet presentation from July 2024, significant capital
expenditure has been estimated for future capacity additions :
●​ Conventional Capacity Addition (Coal): An estimated capitalization of ₹27,000 crore
has been allocated for coal-based projects. NTPC plans to add 7 GW of conventional
capacity in the next three years, with thermal ordering of 4.5 GW and a further 15.2 GW in
the subsequent two fiscal years. This continued investment in coal underscores its role in
India's energy security during the transition period.
●​ Non-fossil Capacity Addition: A much larger sum of ₹75,000 crore is estimated for
non-fossil capacity additions, with a target to execute 12 GW by FY30. This substantial
financial commitment for non-fossil capacity, significantly exceeding that for conventional
coal, provides concrete financial evidence of NTPC's commitment to its green energy
targets. This is not just a stated ambition but a financially backed strategy, which will drive
significant demand for renewable energy components, project development expertise,
and green financing solutions. It also implies a reduced long-term financial exposure to
carbon-intensive assets. NTPC aims to add 16 GW of renewable energy capacity within
the next three years alone.
NTPC is also making a strategic foray into the nuclear power sector, recognizing its potential for
stable, carbon-free baseload generation. The company has signed a Supplementary Joint
Venture Agreement with Nuclear Power Corporation of India (NPCIL) for the development of
nuclear power projects. A significant 2.8 GW nuclear project is currently under active
consideration for award, with an approximate cost of ₹42,000 crore (based on 2017 cost levels).
Furthermore, NTPC is exploring Small Modular Reactor (SMR) technology in collaboration with
the Bhabha Atomic Research Centre (BARC). The active consideration of a substantial nuclear
project indicates NTPC's strategic foresight beyond just renewables. Nuclear power provides
stable, high-capacity, carbon-free baseload generation, which complements the intermittent
nature of solar and wind power. This move highlights India's multi-pronged approach to energy
security. By investing in nuclear, NTPC aims to ensure grid stability and reliable power supply as
the share of renewables increases. It also signifies a commitment to high-tech, long-term
infrastructure, potentially fostering domestic nuclear technology development and creating a
specialized supply chain.
The cumulative investments in key areas further illustrate NTPC's financial priorities:
●​ Cumulative RE Capitalization: This has seen a significant increase, rising from ₹6,080
 crore in FY21 to ₹18,000 crore in FY24, with further increases projected for FY27E.
●​ Cumulative Investment in Coal Mining: Investments in coal mining have also grown,
from ₹8,183 crore in FY21 to ₹10,713 crore in FY24, with projections for continued growth
by FY27E. This indicates a sustained focus on securing fuel supply for its existing and
planned thermal fleet.
Table 3: Estimated Capital Expenditure for NTPC's Capacity Additions
Category Estimated Target Capacity (GW) Target Year/Period
Capitalization (₹ Crore)
Conventional Capacity 27,000 7 GW (next 3 years) + FY30 (for 12 GW
Addition (Coal) 15.2 GW (next 2 FYs) execution)
Non-fossil Capacity 75,000 12 GW (by FY30); 16 FY30
Addition GW (next 3 years)
Nuclear Power Projects 42,000 (approx., at 2.8 GW (under N/A
2017 levels) consideration)
Source:
These figures collectively demonstrate NTPC's significant investment and expansion plans
across conventional, renewable, and nuclear power sectors, alongside strategic investments in
coal mining to ensure energy security and drive future growth.

6. Estimated Steel Requirements for Power Plant

Construction
Steel is an indispensable material in the construction of power plants across all types, forming
the backbone of structural components, critical machinery like turbines and generators,
extensive piping networks, and essential auxiliary systems. The sheer scale of NTPC's ongoing
and upcoming projects necessitates a substantial demand for this fundamental material.

Steel Requirements for Solar Power Plants

For solar power plants, a relatively clear benchmark for steel consumption is available. Each
new megawatt (MW) of solar power capacity requires between 35 tons to 45 tons of steel.
This direct availability of a per-MW steel consumption benchmark for solar allows for a precise
quantitative estimate for NTPC's substantial under-construction renewable energy capacity. This
contrasts with the lack of such specific data for thermal and hydro in the provided information.
This highlights solar power as a direct and immediate driver of demand for the steel industry,
offering clear market signals for steel producers and suppliers. The transparency in solar
material intensity suggests a more standardized and perhaps modular construction approach
compared to the highly customized nature of large thermal or hydro plants.
Given that NTPC has 9,214 MW of renewable energy capacity currently under construction ,
and assuming a significant portion of this is solar, the estimated total steel requirement for these
projects can be calculated:
●​ Estimated total steel requirement (low end): 9,214 MW × 35 tonnes/MW = 322,490
tonnes.
●​ Estimated total steel requirement (high end): 9,214 MW × 45 tonnes/MW = 414,630
tonnes.
Therefore, NTPC's under-construction solar capacity alone is estimated to require between
322,490 and 414,630 tonnes of steel.
Table 4: Estimated Steel Requirements for NTPC's Renewable Energy Projects Under
Construction (Solar Component)
Project Type Total Capacity Under Estimated Steel Total Estimated Steel
Construction (MW) Consumption per MW Requirement (Tonnes,
(Tonnes/MW, range) range)
Solar PV 9,214 35 - 45 322,490 - 414,630
Source:
Steel Requirements for Thermal and Hydro Power Plants
The provided information does not offer specific per-MW steel consumption benchmarks for the
construction of thermal or hydro power plants in India. However, a qualitative assessment
underscores their substantial material intensity:
●​ Thermal Power Plants: These facilities are inherently material-intensive, demanding
significant quantities of steel for boiler structures, turbine components, extensive piping
systems, structural supports, and various auxiliary systems. While one source mentions a
general material intensity for coal plants over their lifetime (approximately 6.2 pounds of
materials, largely steel and cement, per MWh of electricity generated), this is an
operational metric rather than a direct construction intensity per MW. The construction
cost of coal-fired power plants can range from less than $1,000 to $4,500 per kilowatt of
installed capacity, with materials such as steel and concrete being major cost
components.
●​ Hydro Power Plants: Hydroelectric projects involve extensive civil engineering works,
including the construction of dams, tunnels, and powerhouses, which primarily utilize
large volumes of concrete and earthfill. However, they also require substantial quantities
of steel for critical components such as turbine shafts, bearings, and runner blades, as
well as for penstocks, gates, and other structural elements. Large turbines alone can
weigh as much as 172 tons. Investment costs for hydropower projects typically range
from USD 1,200/kW to USD 4,500/kW, with construction material costs being a significant
factor.
The absence of specific per-MW steel consumption data for thermal and hydro power plant
construction in the provided information indicates a potential gap in publicly available,
standardized benchmarks for these sectors. This implies that for thermal and hydro projects, the
steel demand might be less directly quantifiable for external stakeholders, possibly due to the
bespoke nature of these projects, the integration of steel within complex machinery, or different
reporting priorities. For strategic planners and suppliers, this suggests a need for more detailed,
project-specific material take-offs or industry-specific reports to accurately forecast demand in
these segments.

7. Key Observations and Outlook

NTPC is firmly positioned on an aggressive growth trajectory, aiming to nearly double its current
power generation capacity by 2032. This expansion underscores its indispensable role in
meeting India's escalating energy demand and ensuring national energy security. The scale of
its planned and ongoing projects is indicative of a robust and forward-looking strategy.
A defining characteristic of NTPC's current and future strategy is its decisive shift towards green
energy. The substantial financial allocation of ₹75,000 crore for non-fossil fuel capacity
additions, significantly outweighing the investment in conventional coal, demonstrates a strong
and financially backed commitment to India's energy transition and decarbonization goals. This
strategic reorientation is further solidified by the company's entry into nuclear power, which
provides a reliable, carbon-free baseload power source that complements the intermittent
nature of renewables. This multi-pronged approach to energy generation is designed to ensure
grid stability and a diversified energy mix for the nation.
NTPC's increasing reliance on joint venture and subsidiary models for both ongoing and
planned projects is a notable strategic development. This collaborative framework highlights a
pragmatic approach to capital deployment, risk sharing, and leveraging diverse expertise. By
partnering with other entities, NTPC can accelerate its market penetration and facilitate the
adoption of new technologies, such as green hydrogen and battery storage solutions. This
model allows for more agile and efficient project execution, crucial for meeting ambitious
national targets.
The quantifiable steel requirements for solar projects alone highlight a significant impact on the
raw materials supply chain, with hundreds of thousands of tonnes of steel needed for the
current solar pipeline. While precise figures for thermal and hydro projects are not readily
available in the provided data, their inherent material intensity suggests substantial, albeit less
transparent, demand for steel and other construction materials. The frequent commissioning
announcements across NTPC's portfolio illustrate the active and rapid execution of its project
pipeline, translating planned capacity into operational assets at a swift pace. This dynamic
environment necessitates continuous monitoring and adaptability for all stakeholders involved in
supply, finance, and policy.
In conclusion, NTPC's comprehensive and diversified expansion strategy positions it as a
resilient and forward-looking energy major. Its efforts are crucial for India's sustainable
economic growth and energy independence, and the sheer scale of its projects will continue to
drive substantial opportunities and demand across various industrial sectors for years to come.

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