India’s thermal power sector is set for a revival as private firms plan to invest ₹77,000 crore between FY26–FY28. Crisil Ratings reports that major players like Adani Power, Tata Power, JSW Energy, and Vedanta Power will lead this expansion, mainly through brownfield projects. Backed by long-term power purchase agreements and rising electricity demand, this marks the largest private push in thermal power in over a decade.

BulletsIn

• Private sector to invest ₹77,000 crore in thermal power from FY26 to FY28
• Share of private investment in total thermal capex to rise from 7–8% to ~33%
• Long-term 25-year PPAs signed by four state Discoms after 10 years, reduce risk
• India’s power demand to hit 366 GW by FY32; thermal crucial for 24×7 supply
• Govt plans 80 GW new coal capacity by 2032; 60 GW already underway
• Most investment in brownfield projects—faster execution, no new land needed
• Key firms: Adani, Tata, JSW, Vedanta investing in scalable, efficient thermal assets
• Vedanta to demerge power business; target 15 GW capacity through brownfield
• Revival of 2,200 MW via Athena (1,200 MW) and Meenakshi (1,000 MW) projects
• New projects to run at ₹5.5–₹5.8/unit, 15% IRR, with 60% fixed tariff component