NTPC (NSE:NTPC) is India’s largest energy conglomerate with roots planted way back in 1975 to accelerate power development in India. Since then it has established itself as the dominant power major with presence in the entire value chain of the power generation business. From fossil fuels it has forayed into generating electricity via hydro, nuclear and renewable energy sources. This foray will play a major role in lowering its carbon footprint by reducing green house gas emissions. To strengthen its core business, the corporation has diversified into the fields of consultancy, power trading, training of power professionals, rural electrification, ash utilisation and coal mining as well.1

NTPC became a Maharatna company in May 2010, one of the only four companies to be awarded this status. NTPC is ranked No. 2 Independent Power Producer(IPP) in Platts Top 250 Global Energy Company rankings.

The total installed capacity of the company is 62,110 MW (including JVs) own stations include 24 coal based,  7 gas based, 1 Hydro 1 Wind 11 Solar and 1 Small hydro plant. Under JV, NTPC has 9 coal based, 4 gas based and 12 renewable energy projects. The capacity will have a diversified fuel mix and by 2032, non fossil fuel based generation capacity shall make up nearly 30% of NTPC’s portfolio.

NTPC has been operating its plants at high efficiency levels. As on 31.03.2019 the company had 15.5% of the total national capacity and, it contributes 22.3% of total power generation due to its focus on high efficiency.

In October 2004, NTPC launched its Initial Public Offering (IPO) consisting of 5.25% as fresh issue and 5.25% as offer for sale by the Government of India. NTPC thus became a listed company in November 2004 with the Government holding 89.5% of the equity share capital. In February 2010, the Shareholding of Government of India was reduced from 89.5% to 84.5% through a further public offer. Government of India has further divested 9.5% shares through OFS route in February 2013. With this, GOI's holding in NTPC has reduced from 84.5% to 75%. The rest is held by Institutional Investors, banks and Public. Presently, Government of India is holding in NTPC has reduced to 54.14%.

NTPC is not only the foremost power generator; it is also among the great places to work. The company is guided by the “People before Plant Load Factor” mantra which is the template for all its human resource related policies. In 2019, NTPC is recognized as “Laureate” for consistently ranking among “Top 50 Best Companies to Work for in India” for last 11 years in the Great Place to Work and Economic Times survey. Besides, NTPC was also recognized as the best among PSUs and in Manufacturing.

Diversified Growth Plan

NTPC to be a 130 GW company by 2032 with diversified fuel mix and a 600 BU company in terms of generation.2

Coal would continue as predominant fuel with 65% share of coal based capacity in the portfolio.

Non-fossil fuel based capacity would achieve a share of 30% and Thermal based generating capacity share would be 70%.

Share of RE (including hydro) would be 28%

NTPC targets a market share of 25% in ancillary services and storage

NTPC aims to achieve 10% of the estimated market share for supply of electricity in E-mobility business


NTPC Electric Supply Company Ltd. (NESCL)

The company was formed on August 21, 2002. It is a wholly owned subsidiary company of NTPC with the objective of making a foray into the business of distribution and supply of electrical power, as a sequel to reforms initiated in the power sector. The company was also mandated to take up consultancy and other assignments in the area of Electrical Distribution Management System.3

Its maiden entry into power distribution was by forming a 50:50 JV company ‘KINESCO Power and Utility Private Ltd.’ with Kerala Industrial Infrastructure Development Corporation (KINFRA). It is already distributing power in KINFRA owned industrial theme parks.

With the objective of sectoral support in the area of distribution, NESCL has been assigned the responsibility of implementing rural electrification works under the Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY).

NTPC Vidyut Vyapar Nigam Ltd. (NVVN)

NTPC Vidyut Vyapar Nigam Ltd. (NVVN) was formed by NTPC Ltd, as its wholly owned subsidiary to tap the potential of power trading in the country thereby promoting optimum capacity utilization of generation and transmission assets in the country and to act as a catalyst in the development of a vibrant electricity market in India. The company holds the highest category ‘I’ trading license from CERC.

The Government of India has designated the company as the nodal agency for Phase I of the Jawaharlal Nehru National Solar Mission (JNNSM) with a mandate for purchase of power from Solar Power Projects connected to grid at 33 KV and above and for sale of such power bundled with the power sourced from NTPC Coal Power Stations to distribution utilities under Phase I (2010-2013) of JNNSM, which envisages setting up of 1000 MW solar capacity.

The Company has been designated as the nodal agency for cross-border trading with Bhutan and Bangladesh and has entered into an agreement with Bangladesh (BPDB) for supply of 250 MW power for 25 years from various central generating stations of NTPC.

The Company is also engaged in ash business involving sale of Fly Ash and Cenosphere from various coal power stations of NTPC.

Kanti Bijlee Utpadan Nigam Limited (formerly known as Vaishali Power Generating Company Limited)

To take over the Muzaffarpur Thermal Power Station (2*110MW), a subsidiary company named ‘Vaishali Power Generating Company Limited (VPGCL)’ was incorporated on September 6, 2006 with NTPC contributing 51% of equity and the balance equity was contributed by the Bihar State Electricity Board. The company was rechristened as ‘Kanti Bijlee Utpadan Nigam Limited’ on April 10, 2008. Present equity holding is NTPC 64.57% & BSEB 35.43%. The company is upgrading the existing unit and establishing new plant.

Bharatiya Rail Bijlee Company Limited (BRBCL)

A subsidiary of NTPC under the name of ‘Bharatiya Rail Bijlee Company Limited’ was incorporated on November 22, 2007 with 74:26 equity contribution from NTPC and Ministry of Railways, Govt. of India respectively for setting up of four units of 250 MW each of coal based power plant at Nabinagar, Bihar. Investment approval of the project was accorded in January, 2008. 90% power from this project is to be supplied to Railways to meet the traction and non-traction power requirements.

Patratu Vidyut Utpadan Nigam Limited (PVUNL)

PVUNL has been incorporated on 15.10.2015 as a subsidiary of NTPC with 74% stake in the Company and 26% of stake held by JBVNL to acquire, establish, operate, maintain, revive, refurbish, renovate and modernize the performing existing units and further expand capacity of Patratu Thermal Power Station, District Ramgarh, Jharkhand in two phases i.e. Phase-I (3x800 MW) and Phase-II (2x800 MW).

Government of Jharkhand has issued the Notification dated 01.04.2016 for transfer of assets of Patratu Thermal Power Station to Patratu Vidyut Utpadan Nigam Limited.

Nabinagar Power Generating Co. Ltd.

The Company was incorporated on 09.09.2008 as a Private Limited Company with Bihar State Power Generation Company Ltd. (erstwhile BSEB) with a view to set up 3x660 MW Thermal Power Plant at New Nabinagar, Bihar and operation & maintenance thereof. Consequent upon transfer of shares held by BSPGCL to NTPC, the Company became wholly owned subsidiary of NTPC w.e.f. 29th June 2018. Subsequently, word “Private” was removed from its name.

Joint Venture       

The has formed following joint venture companies

JVs For Power Generation

  • Ntpc-Sail Power Company (Pvt) Ltd (NSPCL)
  • Ntpc Tamilnadu Energy Company Limited
  • Aravali Power Company Private Ltd
  • Meja Urja Nigam Private Limited
  • Ratnagiri Gas & Power Pvt. Limited

JVs For Services        

  • Ntpc Ge Power Services Pvt. Ltd.
  • Utility Power Tech Ltd
  • National High Power Test Laboratory Pvt. Ltd. (NHPTL)

JVs For Coal Mining        

  • Ntpc – Sccl Global Ventures Private Ltd
  • International Coal Ventures Pvt. Limited (ICVL)

JVs For Manufacturing & Supply of Equipment

  • Ntpc-Bhel Power Projects Pvt.Ltd
  • Bf Ntpc Energy System Limited.
  • Ntpc-Telk        
  • Energy Efficiency Services Ltd. (EESL)
  • Cil-Ntpc Urja Private Limited (CNUPL)
  • Anushakti Vidhyut Nigam Limited (ASHVINI)
  • Pan-Asian Renewables Private Limited

International Joint Ventures

  • Trincomalee Power Company Limited
  • Bangladesh-India Friendship Power Company Private Limited (BIFPCL)

Joint Venture for Fertilizers

  • Hindustan Urvarak & Rasayan Limited (HURL)

Power Generation       

NTPC is committed to generating power responsibly and sustainably. Besides fossil fuels the company has diversified into producing energy through cleaner and greener sources such as hydro and solar energy. NTPC occupies the premier position in the Indian energy sector in terms of size and efficiency. It accounts for 25% of India’s total generation during the financial year 2015-16. With an increasing presence in the power value chain, NTPC is well on its way to becoming an “Integrated Power Major.” Powering India’s growth story.

Installed Capacity       

Present installed capacity of NTPC Group is 62,110 MW (including 11,755 MW through JVs/Subsidiaries) comprising of 45 NTPC Stations (24 Coal based stations, 7 gas based stations, 1 Hydro station, 1 small hydro, 11 Solar PV and 1 Wind based Station) and 25 Joint Venture stations (9 coal based, 4 gas based, 8 hydro, 1 small hydro 2 Wind and 1 Solar PV)4

NTPC Owned  
Gas/Liquid Fuel74,017
Small Hydro18
Solar PV11870
Owned By JVs/Subsidiaries  
Gas/Liquid Fuel42,494
Small Hydro124
Total (JVs/Subsidiaries)2511,755

Industry structure       

Gross annual generation of the country (excluding import from Bhutan) increased by 5.2% from 1,308 BUs in the previous year to 1,376 BUs in the current year (including renewables). Generation from renewable sources increased by about 24% from 102 BUs to 127 BUs, while generation from conventional sources increased by 4% from 1,206 BUs to 1,249 BUs.5

Generation capacity of 3,479 MW (excluding renewables) was added during financial year 2018-19 compared to 5,392 MW added during the previous year.

Renewable energy capacity of 8,619 MW added during the year. Renewable energy capacity has increased by about 12.5% from 69,022 MW as at 31 March 2018 to 77,642 MW as at 31 March 2019.

22,437 Ckms of transmission lines added during the year as compared to 23,119 Ckms in the previous year.

72,705 MVA of transformation capacity added during the year as against 86,193 MVA in the previous year.

Existing Installed Capacity

The total installed capacity in the country as on 31 March 2019 was 3,56,100 MW (including renewables) with Private Sector contributing 46.2% of the installed capacity followed by State Sector with 29.5% share and Central Sector with 24.3% share.


The total conventional power available in the country during the financial year 2018-19 was 1,249 BUs as compared to 1,206 BUs during previous year, registering a growth of 3.6%. (Generation figures pertain to capacity monitored by CEA).

As far as thermal generation is concerned, based on the monitored capacity by CEA, the generation contribution of central sector is 36.9% with installed capacity share of 24.3%, state sector contributes 32.1% of generation with installed capacity share of 29.5% and private sector contributes 30.6% of generation with installed capacity share of 46.2%. Central sector utilities have performed better as compared to those of state and private sector utilities.


The per capita consumption of power in India was 1,149 units in financial year 2017-18 (provisional) (Source: Central Electricity Authority), which is almost one-third of the global average (3,052 units).

Major end users of power are broadly classified into industrial, agricultural, domestic and commercial consumers. Their shares of electricity consumption were approximately 40%, 18%, 24% and 9%, respectively. During the same period, Traction & Railways and others represented about 9% of power consumption.

With ambitious target of providing free electricity connections to all households in rural areas and poor families in urban areas by Dec. 2018, the Government of India launched Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGYA) in September 2017. As indicated in the Saubhagya Dashboard, 99.99% households have been electrified and only 18,734 households in Chhattisgarh remains to be electrified.

Other key initiatives taken by Government of India include Integrated Power Development Scheme (for providing 24x7 power supply in the urban areas) and Deen Dayal Upadhyaya Gram Jyoti Yojana (agricultural feeders segregation, strengthening of sub-transmission & distribution infrastructure in rural areas and rural electrification). 100% village electrification has been achieved.


The transmission network (at voltages of 220 kV and above) in the country has grown at an average rate of ~ 6% CAGR since the end of 12th Plan in terms of circuit kilometres added.

The total inter-regional transmission capacity of country has increased from 75,050 MW at the end of 12th plan to 99,050 MW as on 31 March 2019. During the financial year 2018-19, 12,600 MW inter-regional capacity was added.

This augmentation of the national grid will help promote competition and enable merit order dispatch of generation leading to lower cost of power for consumers. This is also essential for supporting higher injection of renewables into the grid for transfer of power from RE-rich states to other states. This large-scale integration of renewable energy alongwith other factors such as increasing power generation capacity and reforms in fuel sector is slated to increase the demand for transmission capacity significantly in the coming years.


Distribution is the key link to realize the Government of India’s vision of supplying reliable 24x7 Power for All. For this, the distribution companies need to be healthy to be able to discharge their functions & responsibilities efficiently.

To improve the distribution segment’s performance, Government of India launched a comprehensive power sector reform scheme, Ujwal Discom Assurance Yojana (UDAY) on 5 November 2015 for operational and financial turnaround of Discoms. The Average Cost of Supply (ACS) and Average Revenue Realised (ARR) gap has reduced from ` 0.59 per kWh in 2016 to ` 0.24 per kWh by May 2019 and AT&C have also reduced to 18.37%.

Power Trading       

In India, power is transacted largely through long-term Power Purchase Agreements (PPA) entered into between Generating companies and the Distribution utilities. A small portion is transacted through various short-term mechanisms like bilateral transactions through licensees, Day-ahead transactions through power exchanges and real time balancing market mechanism (i.e. Deviation Settlement Mechanism).

In the year 2018-19, around 88% of power generated in the Country was transacted through the long-term PPA route and about 12% of the power was transacted through short-term trading mechanisms. Short-term electricity transaction in the current financial year increased to 145 BU, as compared to 128 BU in the previous year, registering about 14% growth.

Outlook and opportunities

Strategic focus of the Company

As per its long-term corporate plan, the company has targeted to achieve total installed capacity of 130 GW by 2032, to be implemented through development of greenfield & brownfield projects, collaborations and acquisitions. The capacity will have a diversified fuel mix comprising 65.4% coal, 4.6% gas, 1.5% nuclear and 28.5% Renewable Energy Sources (RES) including hydro. Therefore, by 2032, non-fossil fuel based generation capacity shall make up nearly 30% of the company’s portfolio

The company envisages enhancing its current presence in consultancy, power trading and ancillary services. It is also planning to make a foray into electric mobility and battery storage, supported by research & development and collaboration with OEM/OES, research institutes etc.

Inorganic Growth Opportunities

The company is looking for suitable opportunities for acquisition of power plants to fulfil its growth target, after due techno-commercial diligence and appropriate valuation

The company acquired Barauni Thermal Power Project from Bihar State Power Generation Company Limited (BSPGCL) where two units of 110 MW each are in commercial operation and two units of 250 MW each are under construction. The company has also acquired 100% stake in Kanti Bijlee Utpadan Nigam Limited (KBUNL) and Nabinagar Power Generating Company Limited (NPGCL).

Fuel Security

The company has achieved fuel security through longterm coal supply agreements. The materialization of Annual Contracted Quantity remained 95% in current financial year.

The company has been allocated 10 coal blocks with estimated geological reserves of 7 billion tonnes with estimated mining capacity of 111 million tonnes per annum. With these coal blocks, the company aspires to become one of the largest captive coal mining companies in the country.

Coal production from Pakri-Barwadih and Dulanga Captive Coal Mines started in financial year 2016-17 and 2017-18 respectively. Pakri-Barwadih Captive Coal Mine achieved COD on 1 April 2019. During the current financial year, the combined coal production from these two mines was about 7.3 MMT, which was supplied to the company’s thermal power plants at Barh, Kudgi, Mouda, Bongaigaon, Tanda, Solapur and Unchahar stations.

Renewable Energy

With 928 MW of renewable installed capacity, the company has ventured into large-scale deployment of RE assets and is committed to add 10 GW of own renewable power capacity by 2022. The Company is also assisting the GoI in its National Solar Mission. Currently, 345 MW solar capacity is under

Financial Highlights       

On Feb 07, 2020, NTPC reported Q3 FY 19-20 results. The company reported a 22.60 per cent year-on-year (YoY) rise in net profit at Rs 3,197.73 crore for the December quarter compared with Rs 2,608.18 crore in the same quarter last year.6

Revenue from operations fell 0.30 per cent YoY to Rs 25,412.39 crore compared with Rs 25,491.04 crore in the year-ago quarter.

Ebitda for the quarter at Rs 7,593 crore was higher than Rs 6,901.90 crore in the same quarter last year.

Consolidated margin for the quarter expanded 280 basis points to 29.9 per cent compared with 27.1 per cent in the year-ago quarter

Recent developments

22nd May, 2020. NTPC has signed a MOU with ONGC to set up Joint Venture Company for Renewable Energy Business7

The Maharatna companies NTPC Ltd. and Oil and Natural Gas Corporation Limited (ONGC) have signed a Memorandum of Understanding (MoU) on 21st May 2020 at Delhi to set up a Joint Venture Company for Renewable Energy business. This MoU will enable both companies to accelerate their footprint in the Renewable Energy.

This MOU was signed by Director (Commercial) of NTPC, Mr. A. K. Gupta and Director (Finance) and In-charge Business Development and Joint Ventures of ONGC Mr. Subhash Kumar. The MoU signing activity has been done on Virtual conferencing mode in the august presence of CMD of NTPC Mr. Gurdeep Singh and CMD of ONGC Mr. Shashi Shanker along with the other Directors and officials of both the companies.

As per the MoU, NTPC and ONGC will explore the setting up of offshore wind and other Renewable Energy Projects in India and overseas. They shall also explore opportunities in the fields of sustainability, storage, E-mobility and ESG (Environmental, Social and Governance) compliant projects.

NTPC, presently has 920 MW of installed Renewable power projects in its portfolio and about 2300 MW of RE projects under construction. With this tie up NTPC would accelerate its RE capacity addition program and also expand its footprint in offshore wind and overseas Renewable energy projects in the process for realising its ambitious target of 32 GW of Renewable Energy Projects by 2032.

ONGC has a renewable portfolio of 176 MW comprising of 153 MW wind power and 23 MW of solar.

This development will enhance the presence of ONGC in the Renewable Power business and enable its ambition to add 10 GW of renewable power to its portfolio by 2040.


  1. ^ https://www.ntpc.co.in/en/about-us/ntpc-overview
  2. ^ https://www.ntpc.co.in/en/about-us/diversified-growth
  3. ^ https://www.ntpc.co.in/en/about-us/subsidiaries
  4. ^ https://www.ntpc.co.in/en/power-generation/installed-capacity
  5. ^ https://www.ntpc.co.in/annual-reports/8842/download-complete-annual-report-2018-19
  6. ^ https://economictimes.indiatimes.com/markets/stocks/earnings/ntpc-q3-results-profit-jumps-22-6-to-rs-3198-crore-margin-expands-280-bps/articleshow/74007013.cms?from=mdr
  7. ^ https://www.ntpc.co.in/en/investors/announcements
Created by Asif Farooqui on 2020/06/01 11:29
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