Thermal power investments set to double by FY28: CRISIL

India’s investments in thermal electricity generation are projected to double to Rs 2.3 trillion over the next three years through FY 2027–28, according to CRISIL Ratings, reported by The Economic Times.

This marks a sharp increase from the Rs 1.15 trillion invested in the previous three fiscal years. The uptick reflects rising power demand and the continued need for dependable base load capacity, particularly during peak periods and weather extremes.

Private participation in thermal projects, which was limited to just 7–8% earlier, is expected to rise significantly. CRISIL estimates that nearly one-third of upcoming investments will come from private developers. Public sector undertakings will drive the remaining investment.

The central government plans to add 80 GW of thermal capacity by 2031–32. Of this, 60 GW has already been announced or is under development, including 19 GW led by private players. Most upcoming projects are brownfield expansions, which allow faster deployment using existing infrastructure.

CRISIL has flagged potential bottlenecks in equipment supply. Limited manufacturing capacity and growing order backlogs could delay the delivery of turbines and boilers. However, CRISIL considers fuel supply, offtake arrangements, and tariff adequacy to be stable for now.

Public responses to the report have been mixed. Some raised concerns about the environmental impact of expanding coal-based capacity instead of prioritising clean energy like solar or pumped hydro. Others pointed to India’s history of delays in land acquisition and clearances, which may challenge timely project execution.