Why India’s thermal power projects continue to face delays
India’s thermal power capacity expansion continues to face execution challenges despite a steady pipeline of under-construction projects. The Central Electricity Authority’s (CEA) latest Broad Status Report of Thermal Power Projects shows that delays remain widespread, with projects being held back by equipment supply constraints, contractor performance, land acquisition, regulatory approvals, fuel logistics, and litigation.
Equipment supply and contractor issues
Equipment supply remains one of the most common reasons for project delays. Bharat Heavy Electricals Limited (BHEL), the country’s largest power equipment manufacturer, is cited across multiple projects for delays in supplying critical components.
At NTPC’s Lara Super Thermal Power Project (STPP), inadequate mobilisation and delayed supply of boiler pressure parts by BHEL have affected progress. Similar supply issues involving boiler pressure parts and structural materials have also delayed NTPC’s Singrauli Stage-III and Sipat Stage-III projects.
Contractor performance has also emerged as a recurring challenge. At the Ghatampur Thermal Power Project, work in the Balance of Plant (BoP) area has been affected by financial issues faced by contractor BGR. Other projects, including Ennore Expansion and Uppur STPP, have also experienced contractor-related disruptions, including contract changes and re-tendering, contributing to schedule slippages.
Land, clearances and legal hurdles
Land acquisition and statutory approvals continue to delay several projects even after construction has begun. NTPC’s Darlipalli STPP Stage-II remains affected by pending Stage-II forest clearance and private land acquisition for the ash dyke. At SJVN’s Buxar Thermal Power Project, land acquisition for the water and rail corridors remains pending due to cases before the Land Acquisition, Rehabilitation and Resettlement Authority (LARRA).
Regulatory requirements have also created fresh challenges. The Korba West Supercritical Thermal Power Project is awaiting a decision from the Ministry of Environment, Forest and Climate Change (MoEF) and the Central Pollution Control Board (CPCB) regarding the installation of Flue Gas Desulfurization (FGD) systems following revised environmental requirements.
Legal proceedings continue to affect some projects. The Uppur Supercritical Thermal Power Project has remained on hold since March 2021 following an order of the National Green Tribunal (NGT). Although the Supreme Court subsequently stayed the order, the project has yet to resume, with discussions continuing on alternative implementation models.
Operational challenges remain
Several projects approaching completion continue to face operational bottlenecks. At the Buxar Thermal Power Project, the CEA has identified the readiness of the ash handling system, mills, air preheaters (APH), and coal bunkers as key issues delaying progress. Telangana’s Yadadri Thermal Power Station is also facing shortages of G-9 grade coal and constraints in unloading coal at the plant site.
The report also highlights the lasting impact of earlier disruptions. For the Buxar project, delays are linked to the COVID-19 pandemic, shortages of industrial oxygen cylinders, transportation restrictions during lockdowns, and local protests that interrupted construction activities.
The delays are rarely the result of a single issue. Instead, most projects face multiple overlapping challenges involving equipment supply, contractor execution, regulatory approvals, land acquisition, logistics and operational readiness. Unless these bottlenecks are addressed systematically, timely thermal power capacity addition is likely to remain a challenge.
The featured photograph is for representation only.
