NTPC Limited, India’s largest power utility, has announced major updates to its business strategy, including a substantial cost revision for the Rammam-III Hydroelectric Power Project (HEPP) and the transfer of its coal mining business to a subsidiary.
Rammam-III HEPP: Cost Escalation and Timeline Extension
The Board of Directors of NTPC has approved a revised cost estimate of ₹2,865.56 crore for the Rammam-III Hydroelectric Power Project in West Bengal. This is more than double the original estimate of ₹1,381.84 crore approved in 2014.
Key project details:
- Capacity: 120 MW run-of-the-river hydroelectric project
- Location: Rammam River, Darjeeling district, West Bengal
- Infrastructure: Three generating units of 40 MW each, an 8.2 km headrace tunnel, a surge shaft, a 1,520-meter vertical penstock, and a 740-meter tailrace tunnel
The project, initially expected to be completed by September 2019, is now slated for March 2029, according to the Ministry of Statistics and Programme Implementation (MoSPI)—marking a delay of nearly a decade.
Once operational, the project will enhance NTPC’s renewable energy portfolio, contributing to its goal of achieving 60 GW non-fossil fuel capacity by 2032.
NTPC’s Strategic Business Moves: Coal Mining Transfer
In a separate development, NTPC’s board has approved a partial modification to transfer its coal mining business to its wholly-owned subsidiary, NTPC Mining Limited (NML).
- Contribution: Coal mining generated ₹7,735.54 crore in FY25, accounting for 4.05% of NTPC’s consolidated turnover.
- Valuation: The transfer is valued at ₹10,503.27 crore.
- Execution: The process will be carried out in a phased manner.
This move aligns with NTPC’s strategy to streamline operations and balance its energy mix while increasing focus on renewable energy.
About NTPC
As a Maharatna PSU under the Ministry of Power, NTPC has an installed capacity of over 76 GW, spanning thermal, hydro, renewable, and nuclear power. The company plays a vital role in India’s energy security while driving the transition to cleaner, sustainable energy sources.
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