Thermal Power sector to attract ₹77,000 crore private investment by FY28

India’s thermal power sector is expected to receive ₹77,000 crore in private investment between FY26 and FY28, driven by long-term purchase agreements and increasing demand for base-load capacity according to a report by Crisil Ratings.

India’s thermal power sector is expected to receive ₹77,000 crore in private investment between FY26 and FY28, driven by long-term purchase agreements and the increasing demand for base-load capacity. This has been stated by Crisil Ratings report.  

Further the report said that the thermal power sector is expected to see a total investment of ₹2.3 lakh crore over the next three years, with the private sector expected to contribute nearly one-third of the total. Indicating a significant return to coal-based projects after a prolonged lull.

Long-term power purchase agreements (PPAs) are a major facilitator. Four state power distribution companies have inked 25-year PPAs with private thermal generators, the first such agreements in a decade. These agreements provide more predictable cash flows and lower financial risks, boosting the bankability of thermal projects. These projects can avoid land acquisition issues and utilise existing infrastructure, including pit-head coal linkages, reducing timelines and ensuring faster execution.