India’s thermal power sector is set for a significant investment boost, with investments expected to reach Rs. 2.3 lakh crore ($26.71 billion) by 2027-28, nearly doubling the amount from the previous three years. This surge is attributed to the growing energy demand and the need for stable base load capacity.
As noted by IBEF, Crisil Ratings points out that the private sector participation is expected to increase notably, rising to about one-third of total investments from just 7-8 percent in recent years. The government plans to add at least 80 GW of thermal capacity by 2031-32, with 60 GW already in progress or announced, including 19 GW from private players. These projects are largely brownfield expansions, which typically face fewer execution hurdles than entirely new developments.
However, challenges remain, especially around the timely delivery of critical equipment like turbines and boilers, given limited domestic production capacity and supplier backlogs. Crisil, though, notes that risks related to fuel supply, power offtake, and tariffs are relatively low.
Most of the private projects are expected to become operational after 2028-29 due to longer construction periods. With central and state public sector units leading investments, the sector is preparing for steady growth. The increasing role of private companies reflects a broader shift in India’s energy strategy—balancing its renewable goals with reliable thermal power infrastructure to meet future energy needs.
The following are a few thermal power stocks in focus after investments are set to double to Rs. 2.3 lakh crores by 2028:
NLC India Limited
With a market cap of Rs. 33,924 crores, the stock moved up by nearly 1.5 percent on BSE, rising to Rs. 248.2 on Thursday. NLC India Limited is a Government Company engaged in the mining of lignite, coal and the generation of power by using lignite, along with renewable energy sources and consultancy.
As of March 2025, NLC India’s total thermal power generation capacity stood at 5,300 MW. In FY25, the company’s thermal segment reported a consolidated net book value of assets of Rs. 21,952 crores.
Looking ahead, NLC has outlined a capex plan of Rs. 1.16 lakh crores up to FY30. Its current thermal capacity of 5,300 MW is being expanded further—an additional 1,320 MW is under construction at a cost of Rs. 1,144 crores, while 3,400 MW of new capacity is planned with an investment of Rs. 48,837 crores. Once completed, NLC’s total thermal capacity will rise to 10,020 MW, backed by a total capex of nearly Rs. 49,981 crores.
Torrent Power Limited
With a market cap of Rs. 68,626.6 crores, the stock moved up by nearly 1 percent on BSE, rising to Rs. 1,369 on Thursday. Torrent Power Limited, one of the leading private sector integrated power utilities, is engaged in the business of generation, renewables, transmission, and distribution of electricity.
As of May 2025, the company’s thermal power portfolio includes 2,730 MW from gas-based plants and 362 MW from coal-based facilities.
NTPC Limited
With a market cap of Rs. 3.3 lakh crores, the stock moved down by nearly 1 percent on BSE, falling to Rs. 339.5 on Thursday. NTPC Limited is primarily involved in the generation and sale of bulk power to State Power Utilities. Other businesses include providing consultancy, project management & supervision, energy trading, oil & gas exploration and coal mining.
By the end of FY25, the company expanded its thermal power capacity by 660 MW. In the same period, it also added 3,312 MW of renewable energy capacity.
JSW Energy Limited
With a market cap of Rs. 92,195 crores, the stock moved down by nearly 1.3 percent on BSE, falling to Rs. 538.65 on Thursday. JSW Energy Limited is primarily engaged in the generation of power with principal places located at Vijayanagar (Karnataka), Ratnagiri (Maharashtra), Nandyal (Andhra Pradesh), and Salboni (West Bengal).
By Q4 FY25, the company’s thermal power generation rose 22 percent YoY at 6.2 BUs. It added 2,150 MW of thermal capacity, including 350 MW from Unit 2 at JSW Utkal. Additionally, a power purchase agreement was signed with West Bengal State Electricity Distribution Company for a 1,600 MW greenfield ultra-supercritical plant at Salboni.
Looking ahead, JSW Energy targets a total generation capacity of 30.2 GW by 2030, aiming for a 23 percent CAGR growth by FY30. In the thermal segment, it has 1,800 MW in the pipeline, with 5,658 MW already operational and 1,600 MW under construction.
Written by Shivani Singh
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