Thermal power investments to double to Rs. 2,30,000 crore (US$ 26.71 billion) in three years

India is anticipated to experience a considerable increase in investments for thermal power generation, likely to hit Rs. 2,30,000 crore (US$ 26.71 billion) by 2027–28, almost increasing the total from the last three years. This increase is due to the rising energy demand and the requirement for reliable base load capacity. Crisil Ratings forecasts a significant increase in private sector participation, expected to account for approximately one-third of total investments, compared to only 7–8% in previous years. The government has outlined intentions to increase thermal capacity by a minimum of 80 gigawatts (GW) by 2031–32, with 60 GW already announced or in different phases of implementation, incorporating 19 GW from private developers. The forthcoming projects are mostly brownfield expansions, which typically involve fewer implementation challenges than greenfield developments. Even with a positive investment outlook, specific operational difficulties persist. A significant issue is the prompt delivery of essential machinery parts like turbines and boilers, owing to restricted manufacturing capacity and a substantial order backlog at primary suppliers. Crisil observes that risks associated with fuel availability, electricity off-take, and tariff stability are comparatively minor. The majority of private initiatives are anticipated to commence operations after 2028–29, considering the prolonged construction schedules required. Given that central and state public sector enterprises provide most of the funding, the sector is set for significant growth. The revived interest from investors, especially private firms, indicates a strategic shift in India's energy sector, harmonizing renewable goals with dependable thermal facilities for enduring energy security.