Bullish for Power Sector: India to Add 97GW Thermal Capacity by 2035

The Indian government plans a significant expansion of its thermal power capacity, aiming to add 97,000 MW of coal and lignite-based generation by 2034-35. This move is in response to projected electricity demand reaching 3,07,000 MW, indicating a strong commitment to conventional power sources.

While the article is a month old, the long-term nature of such infrastructure projects means the market impact is sustained. This commitment ensures a robust order book and revenue visibility for companies involved in power generation, equipment manufacturing, and fuel supply for over a decade, underpinning their growth prospects.

This plan is highly positive for power generators like NTPC, equipment manufacturers such as BHEL and Siemens, and EPC contractors like Larsen & Toubro (LT). Coal India (COALINDIA) will also see sustained demand for its primary product. Power Grid Corporation (POWERGRID) will benefit from the necessary transmission infrastructure upgrades.

Traders should monitor quarterly results of these companies for order inflows and execution progress. Keep an eye on government tenders and policy announcements related to thermal power projects. Any shifts in environmental regulations or renewable energy targets could alter this outlook, but for now, the path is clear.

• •Government plans to add 97,000 MW of coal and lignite-based thermal power capacity.
• •Target for capacity addition is by 2034-35.
• •Expansion aims to meet a projected demand of 3,07,000 MW.
• •Significant progress is already underway with ongoing construction and awarded contracts.