NTPC's ₹7 Lakh Crore Plan: Targeting 244 GW Capacity by 2037

Introduction to NTPC's Strategic Vision

State-run power giant NTPC Limited has announced a comprehensive and ambitious long-term growth strategy, setting a new target to achieve an installed capacity of 244 gigawatts (GW) by 2037. This monumental expansion is backed by a planned capital expenditure of approximately ₹7 lakh crore. As India's largest power generation company, currently meeting about a quarter of the nation's electricity demand, this roadmap signals a strategic pivot towards a diversified energy portfolio. The plan not only reinforces NTPC's role in ensuring India's energy security but also aligns with the country's broader goals for economic development and a sustainable energy transition.

A Detailed Look at the Capacity Roadmap

NTPC's strategic blueprint outlines a phased capacity expansion. The company has revised its immediate target for 2032 upwards from 130 GW to 149 GW, reflecting accelerated growth plans. The long-term vision extends to reaching 244 GW by 2037. This represents a nearly threefold increase from its current group-level operational capacity, which stands at over 85 GW. With 32 GW of capacity already under various stages of construction, the company is well-positioned to begin this next phase of significant growth. The expansion is designed to meet India's projected surge in per capita electricity demand, which is expected to climb from 1,500 kWh to 4,680 kWh by 2047.

The ₹7 Lakh Crore Capital Expenditure Plan

The financial backbone of this expansion is a substantial capital expenditure of ₹7 lakh crore. This investment will be strategically allocated across multiple energy verticals. While strengthening its conventional thermal power base, NTPC will channel significant funds into future-ready technologies. The investment covers the construction of new thermal plants, a massive scale-up of renewable energy projects, and a determined push into pumped storage projects (PSP), nuclear power, green hydrogen, and associated chemical production. This diversified investment strategy is intended to de-risk the company's portfolio and position it as a leader across the entire energy value chain.

Diversification into Nuclear and Energy Storage

A key element of NTPC's future strategy is its foray into nuclear energy. The company has laid the foundation stone for the Mahi Banswara nuclear project in Rajasthan, which will feature four units of 700 MW each. With an estimated cost of ₹50,000 crore, this project marks NTPC's formal entry into the nuclear sector, with a long-term ambition to install 30 GW of nuclear capacity by 2047. In parallel, NTPC is making significant strides in energy storage solutions. The company is developing a 160 MWh CO2-based battery storage system at Kudgi, Karnataka, an innovative technology that reduces dependence on critical minerals. This is part of a larger plan to develop over 10,000 MWh of Battery Energy Storage Systems (BESS) co-located with its solar and thermal projects to enhance grid stability.

A Strong Push Towards Renewable Energy

NTPC remains committed to its renewable energy goals, targeting 60 GW of green capacity by 2032. Its subsidiary, NTPC Green Energy Limited (NGEL), is spearheading this effort. Key projects include the Dayapar Wind Energy Project in Gujarat, part of a 450 MW hybrid initiative. In a landmark deal, NGEL awarded Suzlon Energy a contract for a 1,166 MW wind power project, India's largest such order. These initiatives are crucial for achieving India's national target of 500 GW of non-fossil fuel capacity by 2030.

Green Hydrogen and Future Fuels

NTPC is also positioning itself as a key player in the emerging green hydrogen economy. The company is developing a green hydrogen hub at Pudimadaka, Andhra Pradesh, with a planned investment between ₹80,000 crore and ₹85,000 crore. This coastal project is strategically located for potential exports, aligning with India's National Green Hydrogen Mission. This move into green chemicals and hydrogen underscores NTPC's vision of transitioning from a pure-play power generator to an integrated energy company.

Financial Strength and Market Impact

NTPC's ambitious plans are supported by a strong financial position. In the first half of FY26, the company's consolidated Profit After Tax (PAT) rose by 4% to ₹11,334 crore. The group's capital expenditure for the same period increased by 32% year-on-year to ₹23,200 crore, indicating that the expansion is already underway. The company's commitment to shareholder value is evident from its dividend policy, with a total payout of ₹8.35 per share for FY25. This aggressive growth strategy, backed by solid financials and diversification into high-growth sectors, is expected to boost investor confidence and positively impact NTPC's valuation and the broader Indian energy sector.

Conclusion: Powering India's Future

NTPC's roadmap to achieve 244 GW capacity by 2037 with a ₹7 lakh crore investment is more than just a corporate expansion plan; it is a strategic initiative to power India's economic growth. By balancing conventional energy sources with a decisive push into renewables, nuclear, and green hydrogen, NTPC is preparing for the future of energy. This balanced approach ensures grid stability while contributing to national decarbonization goals. As India moves towards becoming a developed economy, NTPC is solidifying its position as the bedrock of the nation's energy security and a key driver of its sustainable development.