State-run power utility NTPC will be entering into the coal gasification segment, targeting production of 5-10 million tonnes of synthetic natural gas per year from coal, a senior company official said. The company plans to start the process in the next financial year 2026-27 with tenders for technical consultants to come out this fiscal.
“The projects will take up to 4-5 years to complete,” the official said. The projects will utilize high ash Indian coal from NTPC’s captive mines, converting it into synthetic natural gas (SNG). The company’s wholly-owned subsidiary NTPC Mining Limited is targeting a coal production of 100 million tonnes per annum by year 2030.
The synthetic natural gas produced, will either be used for the company’s own operations or be sold to other consumers.
Last year, the government approved an outlay of Rs 8,500 crore as financial incentive, for promotion of coal and lignite gasification projects for both public sector undertakings as well as private sector.
In addition to this, the company is currently under the process of site selection for its nuclear plant operations in 16 states including Chhattisgarh, Gujarat, Haryana, Bihar, Maharashtra, Jharkhand, and Andhra Pradesh.
Of the government’s 100 GW nuclear capacity target by 2047, NTPC aims to add 30 GW nuclear capacity.
NTPC is already building nuclear plants with 2.8 GW capacity in collaboration with Nuclear Power Corp of India. One such plant will be based in Madhya Pradesh while the other in Rajasthan. The country presently has 8 GW of nuclear capacity, operated solely by Nuclear Power Corp.
The capacity of NTPC’s nuclear plants will range between 700 MW-1600 MW. The company will be seeking foreign collaborations for plants with higher capacity, the source said.
The cost of setting up 1 GW of nuclear capacity is Rs 15,000 – Rs 20,000 crore.
Earlier, the company incorporated a new subsidiary named NTPC Parmanu Urja Nigam Limited (NPUNL) for undertaking nuclear energy business.
NTPC Ltd has also revised its long-term capacity addition target to 149 GW by FY32, up from 130 GW earlier.
Over the years, NTPC has diversified into renewable energy sources including wind, solar, hydro, nuclear energy, and chemicals, like ethanol and methanol. Going ahead, the company will be more aggressive in increasing its renewable energy capacity and nuclear energy, along with energy storage solutions, it has earlier said.
The company reported a consolidated net profit of Rs 5,225.30 crore in the second quarter of the current fiscal 2025-26, down 3% from Rs 5,380.25 crore in the same period last year.
