Thermal Power May Draw Rs 770 Billion Private Investment

04 Aug 2025 CW Team

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.

The projects are structured around a two-part tariff of Rs 5.5–Rs 5.8 per unit, with 60 per cent as fixed charges and the rest cost-plus, offering a 15 per cent internal rate of return. This model is expected to ensure timely execution and financial viability.

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.The projects are structured around a two-part tariff of Rs 5.5–Rs 5.8 per unit, with 60 per cent as fixed charges and the rest cost-plus, offering a 15 per cent internal rate of return. This model is expected to ensure timely execution and financial viability.

Real Estate

05 Aug 2026

CREDAI-MCHI to Host 10th Design & Construction Conference

CREDAI-MCHI will host the 10th anniversary edition of its Design & Construction Conference on August 19, 2026, at the Jio World Convention Centre in Mumbai.The event is expected to bring together more than 500 procurement leaders, construction heads, architects, consultants and senior real estate decision-makers, alongside over 50 construction and ancillary brands.The conference will feature product launches, technology showcases, knowledge sessions, strategic business-to-business networking and recognition of procurement professionals contributing to the transformation of the construction..

Infrastructure Energy

05 Aug 2026

BorgWarner Wins Extension for High-Voltage Inverter Programmes

BorgWarner has secured a major extension of several high-volume high-voltage inverter programmes from a leading European automotive manufacturer.The contracts cover updated inverter designs for plug-in hybrid and 800V battery-electric vehicle applications. Production is scheduled to begin in 2029.Isabelle McKenzie, President and General Manager, BorgWarner PowerDrive Systems, said the programme extensions demonstrate the company’s position in power electronics and reflect the strength of its technology, in-house expertise and customer relationships.For plug-in hybrid vehicles, BorgWarner wil..

Infrastructure Urban

05 Aug 2026

Castrol India Q2 Profit Rises 43% to Rs 3.48 bn

Castrol India reported a 43 per cent year-on-year increase in profit after tax to Rs 3.48 billion for the quarter ended June 30, 2026, supported by growth across its consumer, industrial and institutional businesses.Revenue from operations increased 25 per cent to Rs 18.71 billion during the second quarter of 2026, compared with Rs 14.97 billion in the corresponding period of 2025. EBITDA rose 41 per cent to Rs 4.94 billion from Rs 3.50 billion.Sequentially, revenue increased from Rs 15.45 billion in the first quarter of 2026, while EBITDA rose from Rs 3.29 billion. Profit after tax increased ..