Stock Insight: Charged Up

NTPC is the largest thermal power generating company in India, accounting for nearly 20 per cent of the installed capacity in the country. NTPC's core business is engineering, construction and operation of power generating plants and also providing consultancy to power utilities in India and abroad. Over the last three decades, it has built a strong portfolio of coal and gas/liquid fuel based generation capacities. As of December 2006, NTPC had an installed capacity of 26,194 MW, about 82 per cent of which comes from its 14 coal-fired plants and 18 per cent from seven gas-based plants. Read on to find out what makes a compelling case for this dominant player of the power sector. Demand Outstrips SupplyThe power industry in India is characterised by energy shortages. In FY06, demand for electricity exceeded supply by about 8.3 per cent and 12.3 per cent during base load and peak load requirements, respectively. In recent years, however, the government has taken measures to restructure the industry and attract investment. The government has also unveiled an ambitious target of

This article was originally published on March 01, 2007.