The state-run electricity giant NTPC Limited plans to
expand its coal-fired power fleet with the first new project in six years, a
policy shift that shows alarm over the nation’s worsening power crises.

NTPC is all set to call bids for three such plants to
meet the soaring demand for electricity. This month, the company will award a
contract to construct a 1,320-megawatt coal-fired plant supercritical plant in
Talchar, Odisha, reported Bloomberg. 

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The company may also consider awarding contracts for two
previously blocked expansion projects at its Lara and Singrauli sites in
central India.

Many states across India are suffering prolonged power
cuts as scorching heatwaves lead to a rise in energy demand at a time when coal
stocks are shrinking and nations globally are struggling with tight fuel
markets. Some areas are experiencing power outages lasting eight hours a day or
more.

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Earlier, NTPC stalled plans to advance the Lara and
Singrauli projects as electricity demand faltered during the pandemic. The
company has been focusing on increasing renewable energy capacity instead of
coals.

According to a Bloomberg report, despite the short-term
addition to its coal fleet, NTPC will stick to a target to rapidly expand clean
energy capacity. The company is looking to reduce the share of fossil fuels in
its energy mix to about half by 2032 from 83% at present.

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NTPC’s plans for the Odisha plant shows how India can use
fossil fuels efficiently as it still depends on coal for nearly 70% of power
generation, said R Srikanth, a professor of energy and climate at the National
Institute of Advanced Studies in Bengaluru.

“One way to do that is phase out all old power plants and
replace them with modern plants that consume less coal to produce the same
amount of energy,” Srikanth said. “We need to stop defaming coal.”

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NTPC’s new project will replace a smaller plant at the
same location that was phased out last year after more than five decades.

The electricity giant is also taking steps to address the
coal shortages that are prompting India’s energy crunch. Imports will be
increased to 20 million tons during the fiscal year. NTPC will aim to increase
annual output at its mines by about 86% to 26 million tonnes.