How NTPC Plans To Dominate Coal, Renewable Energy & Nuclear Power By 2032

Today we have 76 GW of total capacity. Out of that, around 62 is based on coal, around 6.5 GW based on gas, another 3.8 to 3.7 is on hydro. As far as coal is concerned, there's no gas-based plant under construction, but the coal-based plants under construction, either we have awarded the contract or we are going to award, already in the developed stages, around 26 GW. So by 2032, we should be around 88 GW of this coal capacity. This is NTPC and joint ventures put together, it's a combination of that. As far as renewable is concerned, we have said 60 GW by 2032, but along with storage, I believe by 2030 we should be able to achieve that, and by 2032 maybe exceeding towards another 10 to 20 GW, maybe we can reach around 70 to 80 GW by that time. We have very aggressive plans for that, we are working on that, and we are very thankful to some of the states who are coming forward for this. Andhra I mentioned, and Rajasthan we have already 25 GW of firm capacity which we have started working on. Gujarat we are working on Kada and others, which is going to be around, we have our own renewable energy park which is around 5 GW, but in addition to that we are also taking up some other projects in other parts of that park, totaling to around 7 GW at that location. So put together, I think this is going to be... Nuclear? Nuclear is just the beginning. By 2032, what we are planning is only around 2 GW, but at the same time, this will be the modular nuclear? No, no, this is to start with, it is going to be the conventional PWR. But after this, we are also discussing with BARC and DAE how to participate in the small modular reactors. This is probably at some other day we will discuss, because this is a full subject itself. This will be very capital intensive, very technological, and more than that, there is going to be a lot of regulations which need to be taken care of.

Capital should not be an issue at all, absolutely, because we have multiple strategies to do that. One is NGL, as I was mentioning, is a self-revenue generating model, and of course NTPC as a parent is there to back up with large cash flows available. Sparingly, if it comes to some point that we are ramping up our capacity depending on all the storage solutions coming up, green hydrogen molecular business, we have the option of putting the money from NTPC also through a rights issue. And at that time, the rights issue will come to all the shareholders as well in that sense.

Your EBITDA margin is going to be around 86% and 86 to 90% it would remain. But it's a competitive thing compared to your earlier regime of cost plus. Definitely the pressure will be on the margins, but our strategy would be to not only participate in the tariff-based competitive bidding, we also have the model for joint ventures with other PSUs where the offtake has a color of an agreed cost plus arrangement. So this will ensure that we maintain our margins.