India’s thermal power sector is projected to attract Rs 770 billion in private sector investment between FY26 and FY28, driven by renewed interest from major players such as Adani Power, Tata Power, JSW Energy, and Vedanta Power. According to Crisil Ratings, total thermal investments—including those by public sector undertakings—are expected to double to Rs 2.3 trillion during the same period.

Private firms, which previously contributed only 7–8 per cent of thermal capacity funding, will now account for nearly a third, reflecting a shift in sentiment as long-term viability improves.

For the first time in over a decade, four state power distribution companies have signed 25-year power purchase agreements (PPAs) with private thermal developers. These long-term deals help reduce financial risk and enhance project feasibility.

India's power demand is expected to rise to over 366 GW by 2031–32. While solar and wind will provide 70 per cent of this, thermal power remains essential to meet round-the-clock supply due to the intermittent nature of renewables.

Of the 80 GW of new coal-based capacity targeted by 2032, 60 GW has already been announced. Notably, 19 GW of this is under construction by private developers. Most of the upcoming capacity will be added through brownfield expansions, avoiding land acquisition delays.

Among private players, Vedanta Power is preparing for a major transformation. Following its planned demerger, it intends to add 15 GW of thermal capacity, primarily via brownfield projects. This includes reviving a 2,200 MW portfolio—1,200 MW at the Chhattisgarh Thermal Power Plant (formerly Athena) and 1,000 MW at Meenakshi—both of which already have fuel linkages and infrastructure in place.