India’s Thermal Power Sector to Attract ₹2.3 Lakh Crore
India’s thermal power sector will receive ₹2.3 lakh crore in investments between 2025–2028 to add 15 GW of coal-based capacity and modernise plants amid a 6% annual demand rise. With 70% of electricity from thermal sources, the sector supports heavy industry and employs 2 million people. ₹50,000 crore will go toward emission control, cutting CO2 by 15% per MW, yet coal’s 40% contribution to India’s emissions challenges net-zero 2070 targets. Global coal price volatility, nuclear conversion plans, and the ₹17,965 crore Green Energy Corridor highlight the need to balance thermal with renewable investments.
India’s thermal power sector is set to receive ₹2.3 lakh crore in investments over three years, per CRISIL, to meet rising energy demand. While critical for growth, the sector’s coal reliance raises sustainability concerns.
From 2025–2028, investments will fund 15 GW of new coal-based capacity and upgrades to existing plants, driven by a 6% annual rise in power demand. India’s 210 GW thermal capacity, 70% of electricity, supports industrial growth, with steel and cement sectors consuming 30% of output. The investments include ₹50,000 crore for emission control technologies, reducing CO2 by 15% per MW. The sector employs 2 million workers, but coal’s 40% CO2 contribution clashes with India’s net-zero 2070 target.
High capital costs and global coal price volatility, up 20% in 2025, pose risks. Posts on X question coal’s long-term viability, citing renewable alternatives like NLCIL’s ₹65,000 crore green plan. Critics argue that nuclear conversion, planned for 2047, could divert funds, with SMRs costing $5 billion per GW. Grid upgrades, like the Green Energy Corridor’s ₹17,965 crore, are needed to balance thermal and renewable integration.
Government policies, including ₹1.91 lakh crore in subsidies, support efficiency upgrades. Community-driven energy projects, like NTPC’s farm scheme, could diversify reliance. India’s 396% non-fossil fuel growth offers a path to balance thermal investments with sustainability.
The ₹2.3 lakh crore thermal investment addresses India’s energy needs but must align with renewable growth to meet long-term climate goals.
Source: Outlook Business
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