State-owned integrated power utility NTPC Ltd plans to double production of coal from its mines to 70 million tonnes in the next three years, a senior official of the company told FE.
The company’s plan to ramp up coal output comes amidst the surge in power demand which is estimated to rise 6-7% every year. In line with the expected surge, the government last year announced an addition of 80 gigawatt (GW) of new thermal capacity while increasing the share of renewable energy to 500 GW by 2030.
In the current financial year 2024-25, the company has targeted to produce 40 million tonnes of coal, up by 16% from 34.38 million tonnes produced in FY24.
“Last year we produced around 34 million tonnes of coal and we will be crossing 40 million tonnes this fiscal. We will further increase our (coal) production to 70 million tonnes in the next three years,” the official said.
The state-run power generation company and its units will also issue orders for 16.8 GW of new coal plants over the next three years, Finance Director Jaikumar Srinivasan had earlier said in an analyst call.
These new plants coupled with 10 GW of coal capacity already under construction will expand NTPC’s coal capacity by about 45% from current levels. The plan of increased coal production will support the company’s upcoming coal capacity.
The company does not intend to build greenfield projects but set up brownfield thermal projects as it requires lower expenditure and is faster to implement, the source said. In the current financial year, the company will be commissioning three thermal projects with a cumulative capacity of close to 2.1 GW.
In order to meet the rising peak demand for power every other year, the government has announced measures to increase the country’s coal production while enhancing the coal-based capacity. The government is now confident of producing 1.08 billion tonne of coal during 2024-25.
Moreover, the company plans to utilise coal in its thermal plants, capture the carbon dioxide, and make green ethanol, green methanol, and sustainable aviation fuel after mixing it with green hydrogen.
NTPC Ltd registered a surge of 33% in its consolidated net profit for the last quarter of the financial year 2023-24 at Rs 6,490.05 crore from Rs 4,871.55 crore in Q4FY23. On a sequential basis too, the net profit increased by 24.5%.