State-owned integrated power utility NTPC Ltd is set to double its coal production from its mines to 70 million tonnes over the next three years, according to a senior company official. This ambitious plan comes in response to the growing power demand, which is expected to rise by 6-7% annually.
Ramping Up Production to Meet Demand
In the fiscal year 2024-25, NTPC aims to produce 40 million tonnes of coal, marking a 16% increase from the 34.38 million tonnes produced in FY24. “Last year we produced around 34 million tonnes of coal, and we will surpass 40 million tonnes this fiscal. We will further increase our production to 70 million tonnes in the next three years,” said the official.
Expansion of Coal-Based Power Capacity
NTPC is not just increasing coal production but also expanding its coal-based power capacity. The company and its subsidiaries plan to order 16.8 GW of new coal plants within the next three years. These new plants, along with 10 GW of coal capacity already under construction, will boost NTPC’s coal capacity by approximately 45% from current levels. This increase in coal production will support the upcoming coal capacity expansion.
Focus on Brownfield Projects
The company is focusing on brownfield thermal projects rather than greenfield projects due to the lower expenditure and faster implementation time. In the current fiscal year, NTPC will commission three thermal projects with a total capacity of nearly 2.1 GW.
Government Measures to Boost Coal Production
To address the rising peak power demand, the government has announced measures to boost the country’s coal production and enhance coal-based capacity. The government is now aiming to produce 1.08 billion tonnes of coal during 2024-25.
Innovative Utilization of Coal
NTPC is also exploring innovative uses of coal in its thermal plants. The company plans to capture carbon dioxide emissions and convert them into green ethanol, green methanol, and sustainable aviation fuel by mixing it with green hydrogen.
Strong Financial Performance
NTPC Ltd reported a significant increase in its consolidated net profit for the last quarter of the financial year 2023-24. The net profit surged by 33% to Rs 6,490.05 crore, up from Rs 4,871.55 crore in Q4FY23. On a sequential basis, the net profit increased by 24.5%.
With these strategic plans, NTPC aims to meet the country’s growing power needs while exploring sustainable and innovative uses of coal, ensuring a balanced approach to energy production and environmental responsibility.
