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.

Infrastructure Urban

09 Jan 2026

Dun & Bradstreet Flags New Growth Engines in India 2026 Outlook

Dun & Bradstreet has released its India 2026: D&B’s Perspective report, projecting a stable macroeconomic environment underpinned by fresh opportunities for productivity-led and inclusive growth. The report outlines how India’s next growth phase will be driven by digitised logistics, trusted data ecosystems, clean energy and rising city vitality.According to the outlook, India’s GDP growth is expected to reach around 6.6 per cent by FY2027, supported by resilient consumer demand and sustained public investment. Manufacturing is seen entering a new phase, moving beyond scale towar..

Building Material

09 Jan 2026

Sources Unlimited Introduces Vitamine Pendant Lamp by Melogranoblu

Sources Unlimited has launched the Vitamine Pendant Lamp by Melogranoblu in India, expanding its portfolio of curated international luxury lighting solutions. Designed and crafted in Italy, the Vitamine pendant reflects contemporary glass artistry, combining hand-blown craftsmanship with refined aesthetics and atmospheric illumination.The Vitamine Pendant Lamp is sculpted in hand-blown glass and is available in frosted, silver and black metallised finishes. Each finish offers a distinct visual identity while maintaining a cohesive and sophisticated design language. The lamp’s softly contoure..

Building Material

09 Jan 2026

World Cement Association Names Philippe Richart as CEO

The World Cement Association (WCA) has announced the appointment of Philippe Richart as its new Chief Executive Officer, marking a leadership transition at a time of significant change for the global cement industry. Richart succeeds Ian Riley, who joined the Association in 2019 and played a key role in strengthening WCA’s position as an independent and credible voice for cement producers worldwide.Richart brings more than 30 years of international leadership experience in the cement sector, with extensive exposure across Asia, Africa and Europe. He began his professional career as a constru..