Shares of NTPC Limited (formerly known as National Thermal Power Corporation Limited), India's largest state-run power utility company, experienced a slight dip on Tuesday following the announcement of a major ₹96,000 crores investment in clean energy projects in Chhattisgarh. The stock dropped to ₹329 by 0.12%per share on the NSE at 9:26 AM. Despite the short-term decline, the company's strategic push into renewable energy is seen as a significant move that could enhance long-term growth prospects. For those looking to invest in stocks in India's clean energy sector, NTPC's large-scale investment signals a major shift toward sustainable energy infrastructure.
NTPC signs multiple agreements with the Chhattisgarh government
At the Chhattisgarh Energy Investors Summit-2025 held in Raipur, NTPC signed a series of memorandums of understanding (MoUs) with the state government to establish large-scale clean energy projects.
The first MoU involves setting up a 4,200 megawatt (MW) nuclear power facility in Chhattisgarh at an investment of approximately ₹80,000 crores. This marks one of the largest clean energy investments by a state-run company in India and aligns with the national target of increasing nuclear energy capacity to reduce carbon emissions.
The second MoU was signed between NTPC and Chhattisgarh State Power Generation Company Limited (CSPGCL) to establish a 1,200 MW pumped hydro storage project at Sikaser. The project, valued at ₹5,876 crores, will help balance grid demand and supply by storing excess renewable energy in off-peak hours and releasing it during high demand.
In addition, NTPC entered a joint venture agreement with CSPGCL to develop renewable energy projects with a combined capacity of up to 2 gigawatts (GW) in Chhattisgarh. The estimated cost for this project is around ₹10,000 crores. These projects are expected to significantly boost Chhattisgarh's renewable energy infrastructure and create new employment opportunities in the state.
NTPC's previous clean energy investments
NTPC has been aggressively expanding its renewable energy portfolio in recent years. Just last month, the company signed multiple MoUs with the Madhya Pradesh government to invest over ₹2 lakh crores in renewable energy projects. These projects include solar, wind, pumped hydro, and other carbon-neutral energy sources. This investment reflects NTPC's long-term strategy to shift towards clean energy and reduce dependence on fossil fuels.
NTPC, under the Ministry of Power, is India's largest integrated power utility, meeting around one-fourth of the country's electricity needs. It currently has an installed capacity of over 77 GW, with an additional 29.5 GW under construction. This includes 9.6 GW of renewable energy capacity. The company has set a target of achieving 60 GW of renewable energy capacity by 2032, placing itself as a leader in India's transition to clean energy.
If you're an investor seeking to invest in stocks with strong future growth potential, NTPC's clean energy expansion presents a compelling opportunity. The company's shift towards sustainable energy aligns with global trends and could improve long-term financial performance. However, short-term market reactions may vary based on capital expenditure concerns and execution timelines.
Financial performance and market response
In the third quarter of the financial year 2024-25, NTPC reported a post-tax profit of ₹4,711.4 crores, marking a 3.1% increase from ₹4,571.9 crores in the December quarter of the previous fiscal year. The company's revenue from operations grew by 4.8%, reaching ₹41,352.3 crores in the October-December quarter, compared to ₹39,455 crores in the corresponding quarter of the previous year.
Despite strong financial performance, NTPC's share price experienced limited movement following the investment announcement. Some analysts attribute this to short-term market concerns over the impact of high capital expenditure on profitability. However, long-term investors focused on clean energy may view this as a strategic opportunity to invest in stocks aligned with India's renewable energy transition.
Live updates on NTPC and market performance
As of 11:45 AM on March 11, 2025, NTPC's share price was trading at ₹332 per share, up by 0.79% from the morning session. The stock's rebound suggests that investors are gradually recognising the long-term potential of NTPC's clean energy investments in Chhattisgarh.
For those considering investment opportunities to invest in stocks tied to India's sustainable energy future, NTPC's aggressive clean energy expansion presents a promising avenue. However, market volatility in the short-term is expected as the company manages high capital expenditure and long project timelines. Live updates on NTPC and other major stocks can be tracked through the National Stock Exchange (NSE).
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