NTPC set to award first coal-fired plant in about six years: Report

NTPC Ltd., India’s largest power producer, is going ahead with construction of its first coal-fired plant in about six years, as the global energy crunch spurs demand for the dirtiest fossil fuel.

Bharat Heavy Electricals Ltd. emerged as the lowest bidder to build the 1,320 megawatt project in the eastern state of Odisha, according to people familiar with the matter. NTPC is now discussing whether the state-run engineering firm can accelerate the project time schedule, the people said, asking not to be named as the information is not yet public.

Both companies didn’t respond to emailed requests for comment. 

The global energy crisis following Russia’s invasion of Ukraine has revived interest in coal in countries from Europe to Asia, threatening efforts to curb greenhouse gas emissions and limit warming of the earth. NTPC has said rising demand for electricity is forcing it to build new plants, even as it sticks to its long-term transition goals of expanding renewables capacity and investing in new technologies such as green hydrogen. 

The Talcher project, estimated to cost about $1 billion, will replace a smaller plant at the same site that was phased out last year. New Delhi-based NTPC will continue with its policy to not build coal-burning plants at any new locations, the people said. 

The company has a potential to add about 15 gigawatts at its existing plant locations, although actual installations could be much lower, they said. 

Bharat Heavy, India’s largest maker of power plant equipment, is gearing up for new orders. At an earnings call with analysts in May, the company said it sees a tender pipeline of 7.7 gigawatts of coal power projects this year, including NTPC’s Talcher plant.