NTPC Share Price Decline: Market Reaction
Shares of NTPC Ltd., India’s largest power generation company, traded lower on Tuesday, March 12, 2025, after the company announced a massive ₹96,000 crore investment in clean energy projects in Chhattisgarh.
- The stock was down 0.12% at ₹329 per share on the National Stock Exchange (NSE) at 9:26 AM.
- The minor drop in share price suggests investor concerns over the capital-intensive nature of the projects despite the long-term benefits of companies renewable energy expansion.
Despite the slight dip, companies investment in nuclear, hydro, and renewable energy projects reflects the company’s commitment to India’s clean energy transition and its long-term growth strategy.
NTPC’s ₹96,000 Crore Investment in Chhattisgarh
At the Chhattisgarh Energy Investors Summit-2025 in Raipur, company signed multiple agreements with the Chhattisgarh state government to develop clean energy projects across the state.
This investment will significantly boost India’s renewable energy infrastructure and aligns with NTPC’s target of achieving 60 GW of renewable energy capacity by 2032.
The total planned investment of ₹96,000 crore will be distributed across three major projects:
- A 4,200 MW Nuclear Power Project – ₹80,000 crore investment
- A 1,200 MW Pumped Hydro Storage Project – ₹5,876 crore investment
- A 2 GW Renewable Energy Project – ₹10,000 crore investment
These projects will play a crucial role in Chhattisgarh’s power sector transformation, ensuring energy security, sustainability, and economic development in the region.
Breakdown of NTPC’s Investment Plans
1. ₹80,000 Crore Investment in 4,200 MW Nuclear Power Capacity
company signed a Memorandum of Understanding (MoU) with the Chhattisgarh government to develop a 4,200 MW nuclear power project with an investment of ₹80,000 crore.
- Why Nuclear Energy?
- Nuclear power is a low-carbon energy source that ensures continuous power generation without reliance on fossil fuels.
- It supports India’s goal of reducing carbon emissions while meeting the country’s rising electricity demand.
- Nuclear power plants provide baseload energy, making them critical for grid stability.
- Potential Impact on India’s Power Sector:
- The project will enhance Chhattisgarh’s power supply and contribute to national energy security.
- It will create employment opportunities and boost industrial growth in the region.
- It marks companies expansion into nuclear energy, a sector dominated by the Nuclear Power Corporation of India Ltd (NPCIL).
2. ₹5,876 Crore Investment in a 1,200 MW Pumped Hydro Storage Project
A second MoU was signed between company and Chhattisgarh State Power Generation Company Ltd (CSPGCL) to develop a 1,200 MW pumped hydro storage project at Sikaser, Chhattisgarh, with an investment of ₹5,876 crore.
- What is Pumped Hydro Storage?
- Pumped hydro is a renewable energy storage solution that stores electricity by pumping water to a higher elevation and releasing it when needed.
- It helps balance power supply and demand by providing energy storage during off-peak hours and releasing power during peak demand periods.
- Benefits of the Project:
- Supports grid stability by storing excess renewable energy for later use.
- Provides a reliable backup for solar and wind power, which are intermittent energy sources.
- Reduces reliance on fossil fuel-based power plants.
3. ₹10,000 Crore Investment in a 2 GW Renewable Energy Project
NTPC also signed a joint venture agreement with CSPGCL to establish renewable energy projects up to 2 GW capacity in Chhattisgarh, with an estimated investment of ₹10,000 crore.
- Project Highlights:
- The project will include solar, wind, and hybrid energy installations.
- It will contribute to companies goal of reaching 60 GW renewable capacity by 2032.
- The project is expected to reduce carbon emissions and promote sustainable energy growth.
Previous Investments in Madhya Pradesh
Last month, NTPC signed multiple MoUs with the Madhya Pradesh government to invest over ₹2 lakh crore in clean energy projects.
- The investment includes solar, wind, pumped hydro, and other carbon-neutral projects.
- company is expanding its renewable energy footprint across multiple states to support India’s clean energy transition.
Company Overview: NTPC’s Role in India’s Power Sector
under the Ministry of Power, is India’s largest integrated power company, responsible for generating one-fourth of the nation’s electricity.
Key Statistics:
- Total Installed Capacity: Over 77 GW
- Capacity Under Construction: 29.5 GW, including 9.6 GW renewable energy
- Renewable Energy Target: 60 GW by 2032
NTPC’s investments in nuclear, hydro, and renewable energy align with India’s target of achieving 50% non-fossil fuel-based electricity by 2030.
NTPC Q3 FY25 Financial Performance
NTPC posted strong financial results for Q3 FY25, showcasing steady growth in revenue and profits.
Key Financial Highlights (October-December 2024 Quarter):
- Post-Tax Profit: ₹4,711.4 crore, up 3.1% YoY from ₹4,571.9 crore.
- Revenue from Operations: ₹41,352.3 crore, up 4.8% YoY from ₹39,455 crore.
Despite significant capital expenditures in clean energy, NTPC continues to deliver stable earnings growth and maintain a strong financial position.
Conclusion
NTPC’s ₹96,000 crore investment in Chhattisgarh marks a major step in India’s clean energy transition. The projects, including nuclear, pumped hydro, and renewable energy, will enhance energy security, support sustainable growth, and contribute to India’s carbon reduction goals.
Despite a minor dip in NTPC’s share price, the company’s long-term investment in clean energy strengthens its position as India’s leading power utility. With robust financials and an expanding renewable portfolio, NTPC remains a key player in India’s power sector transformation.
