Global Economy
Demonstrating strong fundamental resilience, the global economy maintained steady progress throughout CY25 across diverse regional markets and sectors. Worldwide economic output expanded by 3.5%, sustained by underlying momentum as markets successfully adapted to higher interest rates, normalising inflation, and shifting geopolitical dynamics. Advanced economies achieved a stable, sustainable growth pace of 1.9% while balancing tighter monetary frameworks and changing trade flows. However, trade policy uncertainties and potential cost pressures stemming from U.S. tariff impositions continue to cast a shadow over near-term global investment and market stability. Meanwhile, emerging and developing economies continued to serve as powerful growth engines, expanding by 4.5% on the back of vibrant domestic consumption and strategic public investments.
Global price pressures eased noticeably. Headline inflation moderated to 4.1%, supported by proactive monetary policies and stable energy costs during the year. While service sector inflation and policy shifts called for prudent capital allocation, businesses and investors navigated the year with strategic focus and measured confidence.
Outlook
According to the International Monetary Funds (IMF) World Economic Outlook, July 2026, global growth is projected to moderate to 3.0% in CY26, before rising to 3.4% in CY27. Renewed geopolitical disruptions, driven largely by the West Asia war are pushing energy prices upwards and disrupting global trade flow, resulting in global inflation to increase to an estimated 4.7% in CY26. However, positive tailwinds include accelerated AI technology investment, ongoing real wage recovery, and accommodative monetary policy frameworks.
Growth in advanced economies is projected at 1.7% in CY26 and 1.8% in CY27, while emerging markets and developing economies demonstrate steady expansion at 3.8% in CY26 and 4.5% in CY27, sustained by robust internal demand and stable trade activity.
India Economy
Indias economy exhibited exceptional resilience in FY 2025-26, successfully navigating global market conditions through steady domestic fundamentals. According to the National Statistical Office (NSO), Indias real GDP grew by a robust 7.7% during the year, underpinned by strong private consumption, vibrant services expansion and sustained public capital spending.
Over the past four years, average retail inflation, as measured by the Consumer Price Index (CPI), has followed a clear downward trajectory, declining steadily from 6.7% in FY 2022-23 to 1.7% in 2025-26. To further nurture growth and support long-term investment momentum alongside easing price pressures, the Reserve Bank of Indias (RBI) Monetary Policy Committee (MPC) maintained a calibrated easing framework, establishing the policy repo rate at 5.25% following progressive rate adjustments. This monetary flexibility was anchored by benign core inflation, which remained comfortably contained around 3.6%, even as input cost dynamics in key industrial sectors like metals and energy remained closely monitored.
[Source: PIB, Economic Survey 2025-26]
Outlook
Looking ahead to FY 2026-27, economic growth is expected to remain steady at 6.6%, supported by a revival in urban consumption, aided by direct tax rationalisation, and resilient rural demand, driven by strong agricultural momentum following proactive climate-mitigation measures. Balanced input costs are expected to support corporate margins and fiscal stability, while improved real wages and stabilising core inflation will further lift discretionary spending, a key metric for the auto and retail sectors. The RBI is maintaining a data-dependent, neutral stance, using calibrated liquidity management to ensure price dynamics remain within target while supporting sustainable credit flows. Crucially, robust momentum across core infrastructure sectors, driven by surging electricity demand and expansion in mining, will reinforce high-capacity utilisation and private capital expenditure, fueling sustained long-term industrial momentum.
While international market shifts call for strategic adaptability, Indias domestic growth trajectory remains securely anchored. Despite global energy price pressures and supply chain headwind stemming from the West Asia conflict, headline CPI inflation is projected to pick up from a low base of 2.1% in FY 2025-26 to a manageable 5.1% in FY 2026-27, with core inflation remaining well-contained. Quarterly CPI is expected to follow a stable trajectory: 4.2% in Q1, 5.1% in Q2, 5.9% in Q3, and 5.4% in Q4, with inflation risks viewed as broadly balanced. Real GDP expansion across quarters, 6.6% in Q1, 6.3% in Q2, 6.5% in Q3, and 6.8% in Q4, reflects a resilient domestic foundation for durable economic progress.
Indias Core Sector Growth and Index
Indias eight primary infrastructure industries are coal, crude oil, natural gas. refinery products, fertilisers, steel, cement, and electricity, carry a combined weight of40.27% in the Index of Industrial Production (IIP), serving as a crucial gauge for overall industrial performance. As per the Ministry of Commerce and Industry, Government of India, the core sector recorded a growth of 2.7% in FY 2025-26. compared to the 4.5% expansion observed in FY 2024-25.
Core Industry Growth Rates
(y-o-y basis in %)
| Sector | Coal | Crude Oil | Natural Gas | Refinery Products | Fertilizers | Steel | Cement | Electricity | Overall Growth |
| Weight | 10.33 | 8.98 | 6.88 | 28.04 | 2.63 | 17.92 | 5.37 | 19.85 | 100.00 |
| FY 2024-25 | 5.1 | -2.2 | -1.2 | 2.8 | 2.9 | 6.8 | 6.3 | 5.2 | 4.5 |
| FY 2025-26 | -0.5 | -2.8 | -2.8 | -0.1 | -0.1 | 9.5 | 8.7 | 1.0 | 2.7 |
Source: Ministry of Commerce & Industry
Global Energy Sector
In C Y25, the global energy sector demonstrated steady expansion, with global energy demand growing by approximately 1.3%, aligning with the decade average according to the Global Energy Review by the International Energy Agency (IEA). Demand was led by the power sector as global electricity consumption grew by nearly 3.0%, well above overall energy demand growth. Geographically, emerging and developing economies continued to drive over three-quarters of global energy demand growth. China remained the largest single contributor, while India maintained strong energy consumption momentum supported by robust industrial expansion. In advanced economies, energy demand stayed stable, with the US recording a 2.3% electricity demand i ncrease driven by manufacturing and data centres, while I European demand stabilised.
In the global energy supply mix in CY25, Solar PV became the single largest contributor to demand growth at over 25%, the first time a renewable source led global primary energy growth, followed by Natural Gas at 17%. Together, renewables and nuclear met nearly 60% of all new energy demand.
Natural Gas demand grew at a measured pace of around 1.2% to reach new highs, supported by steady industrial consumption in North America, Europe, and Asia, where gas continued to support power reliability alongside variable clean energy sources.
Global coal demand rose by 0.4% in 2025. Chinas demand remained flat as renewables offset industrial shills. Strong monsoons reduced Indias coal power generation. In contrast, I IS coal usage jumped 10%, driven by gas-to-coal switching and surging electricity demand.
()il demand growth moderated to 0.7% in CY25, with its overall share in the energy mix continuing to adjust. Rapid electric vehicle adoption, with global annual sales exceeding 20 million units, constrained road fuel demand, though increases in aviation and petrochemical feedstocks provided olTset.
Electricity demand was pronounced across emerging markets, led by China and Southeast Asia. In advanced economies, power consumption was driven by building cooling, industrial electrification, and digital infrastructure. Accelerated AI and data
centre investments, with tech capital spending exceeding $320 billion, alongside electric vehicle charging expansion, further heightened power needs.
Renewable energy sources expanded at a record rate. Solar PV generation added over 600 TWh. the largest annual increase ever recorded for any power technology, helping renewables overtake coal in global electricity generation share during 111 CY25. Furthermore, battery storage deployed a record 110 GW of new capacity.
Indias Energy Sector
India continued to anchor global energy demand expansion in 2025, recording the worlds second-highest absolute increase in energy usage, a growth trajectory that surpassed the combined demand additions of all advanced nations. Strong macroeconomic momentum, accelerating industrialisation, and rising per capita energy needs drove this upward movement.
As per the Energy Statistics India2026 publication by the Ministry of Statistics and Programme Implementation (MoSPI), the countrys Total Primary Energy Supply rose to 932.8 million tonnes of oil equivalent (MToe) during FY 2024-25, marking an annual expansion of 3.0%. Consumption remained firm across industrial manufacturing, transport, residential usage, and agriculture.
Fossil fuels retain the primary share in Indias energy matrix, with coal leading at 59% of total supply, followed by crude oil at 30%, natural gas at 7%, and clean energy sources. The industrial sector continues to be the dominant end-user, accounting for more than half of final energy consumption, followed by transport.
Looking ahead through CY26 and CY27, the global energy trajectory remains anchored in accelerating electrification and clean energy deployment. Global electricity demand is projected to expand at an average annual rate of nearly 3.6%, with emerging economies, led by China and India, driving the vast majority of this growth, according to the IEAs Electricity 2026 report. Low- emissions sources, primarily renewables and nuclear power, are set to meet 100% of net global electricity demand growth over this period. Consequently, coals share m the global power generation matrix is forecast to decline continuously, while solar PV is set to eclipse wind, nuclear, and hydropower to become the largest source of low-emissions generation.
Outlook
According to the International Energy Agency (IEA), emerging and developing economies will account for nearly 80% of net global power demand expansion through 2030, with India serving as a primary anchor of this growth. As the worlds fastest-growing major economy, India is projected to lead global energy demand expansion, fuelled by sustained industrial development, rapid urbanisation, and broad-based economic momentum.
By 2035, India is projected to double its share of global consumption of energy, cementing its role as a key engine of the global energy transition. Electricity consumption is forecast to expand by an average of 6.4% annually, driven by grid infrastructure buildout, escalating cooling requirements, and accelerating nationwide electrification. Concurrently, India surpassed its target of 50 deg 6 nonfossil installed generation capacity ahead of schedule, placing the nation firmly on track to exceed 60% non-fossil capacity by 2030.
Indias Power Sector - Installed Capacity and Generation
According to Ministry of Power statistics. Indias total installed electricity generation capacity expanded to approximately 548.8 GW by mid-2026, marking a substantial increase from about 305 GW recorded in 2015-16. Thermal power generation, comprising coal, lignite, gas. and diesel, represents 251.5 GW. or 45.8% of the total mix. Meanwhile, non-fossil fuel installations (renewables, large hydro, and nuclear) grew to 297.4 GW (54.2%), comfortably
crossing the 50% non-fossil capacity benchmark. Within this segment, total renewable capacity rose to 288.6 GW, dominated by solar at 150.26 GW and wind at 57.4 GW, alongside 8.8 GW of nuclear capacity.
Rising Installed Capacity (GW) (Over the Years)
Indias power sector remains among the most diversified globally, utilising conventional generation, including coal, lignite, gas, large hydro, and nuclear, alongside rapidly scaling renewable sources like solar, wind, biomass, and small hydro. Driven by robust peak electricity demand, India continues to aggressively expand both dispatchable and clean generation capacity, complemented by energy storage systems, to power ongoing economic growth while accelerating its 2070 net-zero pathway commitments.
Indias power sector continues its robust expansion, driven by accelerating electricity consumption, grid modernisation, and comprehensive policy support across conventional and clean energy sources. Electricity generation has increased from 1,168 billion units (1HJ) in FY 2015-16 to 1,847.91 BU for FY 2025-26.
Growth in Power Generation (BU) i Over the Years >
The generation mix continues to be led by thermal sources, with coal-based generation contributing -71.2% of total electricity output. Non-fossil sources, comprising solar, wind, hydro, biomass, small hydro, and nuclear, account for 25.5%. Within non-fossil output, non-hydro renewables (solar, wind, and biomass including small hydro) contributed -14.3%, driven by record utility-scale capacity additions and improved capacity utilisation factors across key renewable regions.
?™? includes Small Hydro
Thermal Plant Load Factor (PLF)
In FY 2025-26, the overall Plant Load Factor for coal and lignite- based power stations registered at 65.57%, with the Central Sector achieving 63.40%, the State Sector recording 52.96%, and the Private Sector at 62.86%. NLCIL Barsingsar Thermal Power Station (BTPS-2 x 125MW) stands FIRST in ranking for the Annual PLF i73.35%) among all India Lignite Based TPS and it stood No. 1 in Monthly PLF ranking for four times in FY 2025-26.
| Sector | FY 2025-26 (%) | 2024-25 (FY 2024-25 Actual) (%) | 2023-24 (FY 2023-24 Actual) (%) |
| Central | 63.40 | 75.32 | 75.09 |
| State | 52.96 | 63.23 | 64.70 |
| Private | 62.86 | 69.96 | 67.65 |
| All India | 65.57 | 69.45 | 69.09 |
Source: Ministry of Power, Govt, of India (Power Sector at a Glance/CEA)
Energy Demand and Supply Outlook
During FY 2025-26, national energy demand reached 1,287 BU, which was almost fully satisfied by a total supply of 1,286 BU, resulting in a marginal deficit of just 0.03%. Looking forward, electricity consumption is forecasted to expand at a compound annual rate of 5.5-6.0% over the next five years. Key growth catalysts include the completion of full Indian Railways electrification in FY 2025-26 and rapid metro expansion, which together are slated to push demand up by 120-125 BU by FY 2029-30. Furthermore, accelerated I (V deployment is projected lo add 40-501 il 1. alongside significant momentum from industrial process electrification, data centre capacity scaling (requiring 2-3 GW). and expanding domestic manufacturing.
During FY 2024-25, nationwide coal supply stood at 1,025.33 MT. In FY 2025-26, coal supply stood at 1,019.50 MT, reflecting continued availability and distribution of coal across the country to meet the requirements of the power and other sectors.
Serving as Indias primary commercial energy source, coal has long powered the nations economic growth and is set to remain indispensable for decades to come. Accounting for 42.9% of the total installed generation capacity, it dominates the national energy landscape.
Following the record extraction of 1,047.52 MT in FY 2024-25, domestic coal production stood at 1150.63 MT for FY 2025-26, maintaining a high baseline of domestic fuel availability.
Non-coking coal imports, primarily utilised for thermal power generation, declined to 180.04 MT in FY 2025-26 from 186.05 MT in FY 2024-25, registering a 3.23% reduction. This decrease reflects enhanced domestic coal supply and improved domestic availability to power utilities, helping curb thermal import reliance. However, total national coal imports rose slightly from 243.63 MT to 246.37 MT, driven by an increase in coking coal imports from 57.58 MT to 66.33 MT to support growing steel production needs.
Coal imports by thermal power plants declined significantly to 45.4 MT in FY2025-26, from 62.5 MT in FY2024-25, registering
a reduction of approximately 27.4%. The decline reflects improved domestic coal availability and increased domestic coal supplies to power plants, thereby reducing dependence on imported coal.
Coal Reserves in India
As of April 1, 2026, Indias total coal resources were estimated at 411527.05 MT, while lignite resources stood at 48188.31 MT. Major coal reserves are located primarily in Odisha, Jharkhand, Chhattisgarh, West Bengal, Madhya Pradesh, Telangana, and Maharashtra.
| State-wise Coal Resources (in Million Tonnes) | ||||
| State | Measured | Indicated | Inferred | Grand Total |
| Odisha | 63,929.08 | 33,930.09 | 8,896.44 | 106,755.61 |
| Jharkhand | 60,658.47 | 27,158.20 | 5,841.95 | 93,658.62 |
| Chhattisgarh | 47,716.41 | 37,047.77 | 1,643.45 | 86,407.63 |
| West Bengal | 19,238.76 | 11,487.40 | 4,208.97 | 34,935.12 |
| Madhya Pradesh | 17,405.15 | 11,558.01 | 5,924.10 | 34,887.26 |
| Telangana | 11,256.78 | 8,626.94 | 3,404.90 | 23,288.62 |
| Maharashtra | 8,384.64 | 3,272.45 | 2,421.30 | 14,078.39 |
| Bihar | 2,346.36 | 6,970.42 | 1,138.87 | 10,455.65 |
| Andhra Pradesh | 1,024.65 | 2,368.94 | 778.17 | 4,171.76 |
| Uttar Pradesh | 884.04 | 177.76 | 0.00 | 1,061.80 |
| Meghalaya | 103.33 | 16.65 | 469.59 | 589.57 |
| Assam | 464.78 | 57.21 | 3.02 | 525.01 |
| Nagaland | 11.89 | 39.33 | 468.86 | 520.08 |
| Sikkim | 0.00 | 58.25 | 42.98 | 101.23 |
| Arunachal Pradesh | 61.96 | 22.74 | 6.00 | 90.70 |
| Total | 233,486.30 | 142,792.15 | 35,248.59 | 411,527.05 |
| Source: Geological Survey of India, Gol | ||||
During FY 2025-26, national lignite production stood at 41.44 MT, while lignite supply stood at 42.96 MT, reflecting continued production and supply to meet the requirements of the power and other sectors.
Lignite Reserves in India (in Million Tonnes)
| State | Measured | Indicated | Inferred | Grand Total |
| Pondicherry | o.oo | 405,61 | 11.00 | 416.61 |
| Tamil Nadu | 5,476.00 | 22.211,09 | 10,636.35 | 38,323.44 |
| Rajasthan | 1.254.20 | 3,175,17 | 2,249.78 | 6,679.15 |
| Gujarat | 1.278.65 | 283,70 | 1,159.70 | 2,722.05 |
| Jammu & Kashmir | 0.00 | 20,25 | 7.30 | 27.55 |
| Kerala | ().()() | ().()() | 9.65 | 9.65 |
| West Bengal | ().()() | 1.13 | 2.80 | 3.93 |
| Odisha | 5.9.1 | ().()() | 0.00 | 5.93 |
| Total | 8,014.78 | 26,096.95 | 14,076.58 | 48,188.31 |
Source: Geological Survey of India, Gol
Lignite Sector - Production & Supply
As per the Indian Coal and Lignite Resources-2026 released by Geological Survey of India, lignite reserves in the country are estimated at around 48,188.31 MT as on 01.04.2026. The major deposits are in the State of Tamil Nadu, followed by Rajasthan, Gujarat, Union Territory of Puducherry, Jammu and Kashmir, Kerala, Odisha, and West Bengal.
Moving towards green power
Anchored by robust policy frameworks and rapid technological adoption, the domestic power sector is executing a major strategic pivot toward renewable and low-carbon energy. This energy transition reflects a balanced national priority safeguarding long-term energy independence while advancing ambitious environmental goals.
The Ministry of New & Renewable Energy (MNRE i has played a pivotal role in steering Indias energy landscape towards decarbonisation, in alignment with the commitment made at COP26 to achieve 500 GW of installed electricity capacity from non-fossil fuel sources by 2030. As of2026, India has achieved 297.36 GW of capacity from non-fossil fuel sources, including 288.58 GW from renewable energy and 8.78 C1W from nuclear power. This accounts for a major portion of the nations total installed power generation capacity, representing a major milestone in Indias clean energy transition and its broader climate goals.
Source-wise Installed Power Capacity FY 2024-25 (%)
Renewable Energy Sector
I Driven by focused policy initiatives, robust governance frameworks, and an expanding domestic manufacturing base, Indias renewable energy sector has made substantial strides in both generation and total capacity, establishing itself as a cornerstone of the national energy policy.
Reaching an installed capacity of 288.6 GW by March 2026 underscores Indias commitment and technical capacity to expand green infrastructure. Beyond marking steady progress toward the nations 500 GW target, this milestone cements Indias role as a global leader in clean energy adoption. Today, renewables play a crucial role in diversifying the national grid and safeguarding longterm energy security.
Over the past decade, total clean energy output expanded dramatically, moving from 190.96 billion units (BU)in2014-15 to 308.81 BU during FY 2025-26. Consequently, renewable sources now account for roughly 26.20 deg o oflndias overall electricity output, up from 17.20% over the same period, demonstrating their vital contribution toward meeting surging energy needs while curbing greenhouse gas emissions.
C \
Tax Write-Off & Accelerated Depreciation Rules for Rooftop Solar
Under the self-owned CAPEX model, businesses can claim a 40% Accelerated Depreciation tax deduction under Section 32 in Year E significantly lowering taxable income compared to the standard 15% rate. Entities under the Old Tax Regime can add a 20% initial depreciation under Section 32(l)(iia) for a 60% total first-year write-off (unavailable under the 115BAA/115BAB concessional tax regimes). To gel the full Year 1 deduction, the plant must be commissioned before October 3 (180 days of use). If commissioned after October 3 (<180 days), the allowable first-year claim is halved to 20% under concessional regimes or 30% under the old regime. These write-offs require direct ownership, excluding third-party OPEX/RESCO PPAs, and allow capitalising uncredited GST into the asset base.
Solar Power
Solar power leads Indias shift toward clean energy. From just 2.82 GW in FY 2014-15, total solar capacity expanded 53.28x to reach 150.26 GW in FY 2025-26. A historic single-year addition of29.70 GW during the year under review highlights this surging momentum. Today, solar forms the bedrock of the countrys renewable energy basket, reinforced by expanding decentralised rooftop systems and a maturing local supply chain. Targeted policy mechanisms, ranging from dedicated solar park infrastructure to enhanced grid connectivity and local module manufacturing under the Make in India initiative, continue to drive this unprecedented scale-up.
Solar Power Installed Capacity Growth (GW)
Manufacturing Boost (2014 to March 2026):
- Solar PV module capacity surged from 2.3 GW to 172 GW. a 74-fold increase
- Solar PV cell capacity grew from 1.2 GW to 38 GW. a 31- lold increase
Wind Energy
Indias wind power landscape continues its upward trajectory. Over the past decade, nationwide installed capacity expanded by more than 160%. growing from a 21 GW baseline in FY 2014-15 to 56 GW by FY 2025-26. This expansion was propelled by a landmark single-year addition of 6.05 GW during FY 2025-26.
Total electricity generated from wind reached 91.40 111 1 over the same fiscal period, contributing 5.15% to the national power grid. Concurrently, domestic supply chains have matured, with 14 Indian manufacturers now producing 31 type-certified turbine variants. Backed by an annual domestic manufacturing capability of IS GW, the sector remains well-equipped to drive future onshore and offshore installations.
Short-term Power Market in India
Indias short-term power market, underpinned by evolving Deviation Settlement Mechanism (DSM) regulations, plays a critical role in satisfying the nations dynamic energy demand. By granting operational agility to both buyers and sellers, it strengthens market efficiency, improves forecasting compliance, and enables real-time grid balancing as demand and generation profiles fluctuate.
Central Electricity Regulatory Commission data indicates that short-term trading comprised 17.7% of nationwide power generation during FY 2025-26, with long-term agreements and intra-state arrangements making up the remaining 82.3%. These figures highlight how short-term transactions deliver the necessary liquidity and market responsiveness to stabilise the grid.
Key Features of CERCs 2026 Second
Amendment Regulations on Power Markets and
Tariff Structures
- Designation of Grid-India as MCO: The CERC (Power Market) 2 nd Amendment officially designates the Grid Controller of India Limited (Grid-India) as the single Market Coupling Operator (MCO). Grid-India oversees centralised price discovery and uniform market clearing across both the Day-Ahead (DAM) and Real-Time (RTM) electricity markets.
- Unified Market-Clearing Price (UMCP): Instead of individual power exchanges independently calculating local clearing prices, power exchanges submit anonymised, standardised bid data directly to the MCO. The MCO runs a centralised algorithm to compute a single, uniform market-clearing price across all platforms.
- Tariff Integration for Energy Storage Systems (ESS):
Battery Energy Storage Systems (BESS) co-located with generation or transmission assets are integrated into a multi-part billing structure. This splits remuneration into Fixed Capacity Charges (for availability) and Energy Charges (for actual charge/discharge usage).
- Normative Storage Performance Standards: The 2 nd
Amendment Tariff framework sets explicit performance baselines for storage projects, requiring a minimum 90% availability benchmark to claim full capacity charges and an 85% Round-Trip Efficiency (RTE) target, along with structured financial incentives for operational efficiency gains.
Growth Trends and Market Dynamics
From FY 2009-10 through FY 2024-25, short-term power trading (inclusive of I )SM) expanded from 65.90 BU lo an all-time high of 238.35 1511 registering a compound annual growth rate (CAGR) of 8.9% that consistently outpaced total electricity generation growth over the same period.
In FY 2024-25, aggregate short-term trades and Deviation Settlement Mechanism (DSM) reached 238.35 BIJ, marking a 6.22% increase over the 218.22 BU recorded in FY 2023-24.
Excluding DSM (32.14 BU). power exchange transactions and bilateral trading accounted for 206.21 BU in FY 2024-25. In monetary terms, the short-term sustained its upward valuation
trajectory into FY 2024-25.
Key Market Highlights
- Power Exchanges: Transactions via power exchanges (IEX, PXIL, HPX) reached 143.68 Billion Units (BU) in FY 2024-25. Exchange-based trading sustained strong momentum, continuing its long-term expansion from FY 2009-10 at a CAGR of-20.5%.
- Trading Licensees & Bilateral Transactions: Direct bilateral transactions through traders and direct deals totalled 80.91 BU in FY 2024-25. Bilateral trading through licensed traders alone grew to 41.02 BU (up 21.36% from 33.8 BU in the previous period), indicating steady demand for customised contracts among large utilities and industrial entities.
- DSM Volume: Deviations under the Deviation Settlement Mechanism (DSM) accounted for 33.96 BU in F Y 2024-25. DSMs overall share of short-term power volume dropped to -13.1% in FY 2024-25 (down from 39.2% in FY 2009-10), reflecting tighter grid regulations, improved scheduling discipline, and better real-time balancing mechanisms.
- Total Short-Term Market Share: Total short-term power transactions (Exchanges + Bilateral + DSM) reached a record258.56 BU in FY 2024-25, representing 15.28% of the total 1,692 BU of electricity transacted across India.
Cross-Border Electricity Trade
India is a net exporter of electricity to Bangladesh and Myanmar, maintains seasonal bi-directional power trade with Nepal (which now exports substantial surplus hydropower to India during monsoon months), and remains a net importer of electricity from Bhutan.
Cross-Border Trade of Electricity between India and Its Neighbouring Countries (MU), FY14 to FY 2024-25
| Year | Bhutan (+) | Nepal (-) | Bangladesh (-) | Myanmar (-) | Net Export/Import by India |
| 2013-2014 | 5,555.18 | 840.37 | 1.448.19 | 0.00 | 3,266.62 |
| 2014-2015 | 5,109.48 | 997.17 | 3.271.89 | 0.00 | 840.42 |
| 2015-2016 | 5,555.07 | 1.469.59 | 3.654.4 | 0.00 | 431.08 |
| 2016-2017 | 5,863.58 | 2.021.21 | 4.419.61 | 3.23 | (580.47) |
| 2017-2018 | 5,611.14 | 2,388.96 | 4,808.83 | 5.07 | (1.591.72) |
| 2018-2019 | 4,657.07 | 2.798.84 | 5,690.31 | 6.67 | (3,838.75) |
| 2019-2020 | 6,310.73 | 2.373.06 | 6,987.94 | 8.61 | (3,058.88) |
| 2020-2021 | 9,318.17 | 1.865.05 | 7,551.99 | 9.24 | (108.11) |
| 2021-2022 | 7,670.34 | 1.921.09 | 7,301.74 | 8.8 | (1,561.29) |
| 2022-2023 | 6,379.95 | 158.05 | 8,622.14 | 9.8 | (2,410.04) |
| 2023-2024 | 3,862.78 | 154.08 | 8,413.52 | 8.47 | (4.713.29) |
| 2024-2025 | 4,466.45 | 497.29 (+) | 8.118.27 | 9.01 | (3,163.54) |
Source: CERC, (-) Export, (+) Import
Renewable Energy Certificates (RECs)
A total of 187.201 ,akh Renewable I inergy Certificates (RECs) were traded across power exchanges and bilateral licensee channels during FY 2025-26, representing a 5% year-over-year rise from the 178.26 Lakh RECs cleared in FY 2024-25.
Under the framework established by the CERC REC Regulations 2022. the former division between solar and non-solar certificates was phased out in favour of a single, unified REC instrument. To incentivise emerging and capital-intensive clean technologies, this mechanism incorporates certificate multipliers, boosting both market appeal and financial feasibility for a broader range of renewable power projects.
In Terms of Market Performance:
- The market clearing volume of RECs traded on power exchanges surged to 304.18 Lakh in FY 2024-25
- The weighted average market clearing price of these RECs further declined to Rs225/MWh in FY 2024-25
- Additionally, REC trading through licensed traders reached 38.91 Lakh RECs in FY 2024-25. with the weighted average price decreasing to Rs291/MWh
Growth of Renewable Energy Certificates Transacted on Power Exchanges and Bilaterally through Traders, 2011-12 to 2024-25
| Year | Number of Buyers | Number of Sellers | Number of RECs Transacted (Lakh) |
| 2011-12 | 397 | 197 | 10.15 |
| 2012-12 | 802 | 683 | 25.90 |
| 2013-14 | 1,083 | 1.044 | 27.49 |
| 2014-15 | 821 | 1.378 | 30.62 |
| 2015-16 | 1,332 | 1.512 | 49.55 |
| 2016-17 | 1,760 | 1.588 | 64.88 |
| 2017-18 | 1,140 | 1.088 | 162.00 |
| 2018-19 | 988 | 830 | 126.00 |
| 2019-20 | 830 | 820 | 89.28 |
| 2020-21* | 277 | 523 | 9.21 |
| 2021-22* | 541 | 749 | 84.60 |
| 2022-23 | 520 | 820 | 82.50 |
| 2023-24 | 493 | 723 | 138.53 |
| 2024-25 | 484 | 364 | 343.09 |
*As per Honble APTEL Order trading sessions of RECs at both the Power Exchanges was suspended from Jul20 to Oct21 and resumed from Nov21 as per Honble APTEL Order dated 09.11.2021.
Note: 2022-23 onwards includes RECs traded bilaterally through Trading Licensees.
Source: NLDC
Key Features of the CERCs 2026 First Amendment Regulations on Renewable Energy Certificates (RECs)
- Validity of RECs: Certificates issued remain valid until redeemed, with no fixed expiry date.
- Eliminated Floor and Forbearance Price: Prices are discovered on power exchanges or mutually agreed via traders, with CERC holding intervention powers during abnormal volatility, extreme price spikes/drops, or severe volume fluctuations.
- REC Fungibility & RCO Compliance: Solar/non- solar categorisations remain replaced by a unified REC contract. Under the 2026 amendment, RECs also integrate Virtual Power Purchase Agreements (VPPAs) and serve as an official compliance tool for Designated Consumers meeting Renewable Consumption Obligations (RCOs) under the Energy Conservation Act.
- Certificate Multiplier: Multipliers promote less mature or capital-intensive technologies (e.g., offshore wind at 4.0x, biomass/hydro at 3.0x) by enhancing their market value. Under the 2026 framework, multipliers are assigned based on tariff, technology maturity, and grid value, remaining valid for 15 years from project commissioning. Pre-existing projects commissioned prior to December 5, 2022 are excluded from multiplier adjustments.
- Transactions through Trading Licensees & VPPAs:
Trading through licensed traders provides long-term bilateral visibility. Furthermore, VPPA-linked RECs transfer directly to designated consumers to meet RPOs/ RCOs; while excess VPPA certificates can be carried forward for future compliance, they cannot be resold on power exchanges.
Multipliers for different RE Technologies
| RE Technologies | Tariff Range (^/ kWh) | Certificate Multiplier |
| On Shore Wind and Solar | <=4 | 1 |
| Hydro | 4-6 | 1.5 |
| Municipal Solid Waste and NonFossil Fuel based Cogeneration | 6-8 | 2 |
| Biomass and Biofuel | 8-10 | 2.5 |
The 30 Critical Minerals
| 01 Antimony | 16 REE# |
| 02 Gallium | 17 Tellurium |
| 03 Lithium | 18 Zirconium |
| 04 Phosphorus | 19 Cobalt |
| 05 Strontium | 20 Hafnium |
| 06 Tungsten | 21 Nickel |
| 07 Beryllium | 22 Rhenium |
| 08 Germanium | 23 Tin |
| 09 Molybdenum | 24 Selenium |
| 10 Potash | 25 Copper |
| 11 Tantalum | 26 Indium |
| 12 Vanadium | 27 PGE* |
| 13 Bismuth | 28 Silicon |
| 14 Graphite | 29 Titanium |
| 15 Niobium | 30 Cadmium |
| *PGE - Platinum, Palladium, Rhodium, Ruthenium, Iridium, Osmium | |
| #REE - Lanthanum, Cerium, Praseodymium, Neodymium, Promethium, Samarium, Europium, Gadolinium, Terbium, Dysprosium, Holmium, Erbium, Thulium, Ytterbium, Lutetium, Scandium, Yttrium |
Critical Minerals
Driven by the National Critical Mineral Mission (NCMM), critical minerals, including lithium, cobalt, nickel, rare earth elements, and copper, form the strategic backbone of clean energy technologies, powering solar modules, wind turbines, electric vehicles (EVs), grid- scale energy storage systems, and green hydrogen electrolysers.
Critical minerals are vital for economic development and national security, but geographic concentration creates strategic supply vulnerabilities. To secure self-reliance, the government launched the National Critical Mineral Mission (NCMM) spanning FY 2024-25 to 2030-31. Building on the 30 critical minerals identified by the Ministry of Mines, 24 are listed under Part D of Schedule I of the amended Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act). Under this framework, the Central Government holds exclusive authority to auction mining leases, composite licenses, and exploration licenses. Under NCMM, over 100 critical mineral blocks are targeted for central auctions to accelerate domestic exploration, processing, and recycling.
150.26 gw
Indias current solar capacity
Usage of Critical Minerals
Solar Energy: Critical minerals such as silicon, tellurium, indium, and gallium are vital for photovoltaic (PV) cell production. Indias current solar capacity of 150.26 GW is heavily dependent on these minerals.
Wind Energy: Rare earth elements like dysprosium and neodymium power wind turbine permanent magnets. India aims to expand its wind capacity from 57 GW to 140 GW by 2030, requiring a steady mineral supply.
Electric Vehicles (EVs): Lithium, nickel, and cobalt are essential for lithium-ion batteries. Under PM E-DRIVE, India targets 30% EV adoption by 2030, driving surging demand for these critical minerals.
Green Hydrogen & Fuel Cells: Critical rare earth elements such as Cerium (Ce), Lanthanum (La), Yttrium (Y), Gadolinium (Gd), Samarium (Sm), Scandium (Sc), Neodymium (Nd) and Praseodymium (Pr) are essential for high-performance green hydrogen production and fuel cell technologies, serving as key materials in electrolytes, electrodes, catalysts and electrolysis systems.
CCUS: Critical rare earth elements such as cerium, lanthanum, yttrium, gadolinium and scandium are used in advanced catalysts, sorbents and ceramic membranes to enhance CO2 capture, separation and conversion efficiency in CCUS systems.
Key Highlights of the Mines and Minerals (Development and Regulation) (MMDR)
Amendment Act, 2026
- Capping of State Levies (Section 9D): Introduces a new section prohibiting state governments from imposing additional taxes, cesses, or levies on mineral rights or mineral-bearing lands, whether based on quantity, value, or royalty, except under conditions specifically prescribed by the Central Government.
- Union Regulation over Mineral-Bearing Lands:
Amends Section 2 of the principal Act to explicitly bring "mineral-bearing lands" under the direct regulatory scope of the Central Government to establish a single, nationwide mineral taxation regime.
- Treatment of Past State Levies: Declares any uncollected or pending state-level mineral tax demands invalid. However, taxes or cesses already deposited or recovered by state governments prior to the commencement of the Act remain non-refundable.
- Rule-Making Authority (Section 13): Expands the Central Governments powers to frame uniform rules and parameters governing any future levies states may be permitted to impose, ensuring predictable operating costs for mining entities.
- Protection of Core Revenues: Preserves state receipts from auction premiums, royalties (Section 9), District Mineral Foundation (DMF) contributions (Section 9B), and National Mineral Exploration Trust (NMET) contributions (Section 9C).
V /
National Critical Mineral Mission (NCMM)
To secure these resources, the Government of India launched the National Critical Mineral Mission (NCMM) with Cabinet approval in January 2025 to establish a robust framework for self-reliance in the critical mineral sector. Under this mission, the Geological Survey of India (GSI) has been tasked with conducting 1,200 exploration projects from FY2024-25 to FY 2030-31.
Objectives of NCMM
Meeting Indias commitments, reaching net-zero emissions by 2070, generating half of its power from clean sources by 2030, and lowering economic emissions intensity by 45% against 2005 benchmarks, depends heavily on the National Critical Mineral Mission (NCMM). The mission underpins these climate targets by establishing a self-sufficient critical mineral value chain through expanded domestic mining, active private participation, strategic foreign alliances, and modernised regulatory frameworks to secure essential green tech supply chains.
Battery Storage
Indias Battery Energy Storage Systems (BESS) market is poised for transformative growth, driven by the nations target of achieving 500 GW of non-fossil energy capacity by 2030 and the critical need for grid stability. According to the National Electricity Plan (NEP 2022-32) released by the Central Electricity Authority (CEA), Indias energy storage capacity requirement is projected to reach 82.37 GWh by FY 2026-27. comprising 47.65 GWh from Pumped Storage Projects ( PSP) and 34.72 GWh from BESS. This requirement rises significantly to 411.4 GWh by F Y2031-32 (175.18 GWh from PSP and 236.22 GWh from BESS). Furthermore, the CEA projects that by 2047, storage needs will expand to 2.380 GWh (540 GWh from PSP and 1,840 GWh from BESS) to support Indias Net Zero 2070 target.
This Accelerated Growth is Primarily Driven by
Renewable Energy Integration: Indias installed renewable capacity reached approximately 288.5 GW, rapidly pushing towards 500 GW non-fossil fuel capacity by 2030. BESS is critical for managing the intermittency of solar and wind power, enabling round-the-clock (RTC) clean energy supply and ensuring grid stability.
Increasing EV Deployment: The swift expansion of electric mobility across India is generating substantial demand for battery energy storage systems, primarily within charging networks to manage demand surges and stabilise power delivery.
Declining Battery Costs: Global lithium- ion battery pack prices have continued their downward trajectory, making BESS solutions increasingly economically viable and accelerating adoption. Driven by rapid LFP chemistry adoption and manufacturing overcapacity, stationary storage battery pack prices fell, while average cell costs are projected to decline further to $68/kWh by 2030.
Policy Support: Robust policy support underscores the Indian governments commitment, driven by the National Framework for Energy Storage Systems (2023), the Rs18,100 crore Production-Linked Incentive (PLI) for Advanced Chemistry Cell (ACC) manufacturing, and dedicated Viability Gap Funding (VGF). To expand beyond the initial 13.2 GWh BESS targets, an extra Rs5,400 crore in VGF allocation will finance 30 GWh of standalone storage capacity. Additionally, grid integration remains incentivised via an extended Inter- State Transmission System (ISTS) waiver through June 30,2028.
Green Hydrogen
Energy Access and Efficiency in India
India is the worlds third-largest producer and consumer of hydrogen, following China and the 1 Jnited States, with an annual demand of approximately 7.5 Million Metric Tonnes Per Annum (MMTPA), primarily consumed in crude oil refining and fertiliser manufacturing. 1 lowever, the vast majority remains grey hydrogen produced from fossil fuels via steam methane reforming. With national hydrogen demand expected to increase nearly threefold by 2040, the core priority is transitioning this growth toward green hydrogen produced using renewable energy.
Recognising this strategic imperative, the Government of India launched the National Green 1 lydrogen Mission (NGHM). With direct PLI electrolyser and green hydrogen production allocations actively underway in FY 2025-26, NG11M aims to position India as a global clean energy hub, enhancing energy self-reliance, cutting emissions, and creating extensive employment in green technology sectors.
National Green Hydrogen Mission: Progress
Launched in January 2023 with a 719,744 crore outlay through 2030, the National Green Hydrogen Mission has transitioned from policy planning to active operational execution under its core SIGHT (Strategic Interventions for Green Hydrogen Transition) programme:
Production Allocations: SECI has allocated a cumulative 862,000 tonnes per annum of green hydrogen production capacity across 18 winning bidders under SIGHT Mode-1 incentives.
Electrolyser Manufacturing: 3,000 MW/ year of domestic electrolyser manufacturi ng capacity has been awarded to 15 companies backed by 74,440 crore in PLI support.
Industrial Offtake Agreements: Offtake discovered includes 724,000 tonnes per annum of green ammonia for 13 fertiliser plants and 20,000 tonnes/year for oil refineries.
Pilot Projects & Mobility: Over 71,000 crore sanctioned for active pilot projects, deploying 37 hydrogen buses/trucks across 10 routes and establishing green hydrogen hubs/clusters.
2030 Baseline Targets: Remains anchored toward achieving 5 MMTPA green hydrogen output, adding -125 GW dedicated renewable capacity, cutting 50 MMT CO; annually, and unlocking 78 Lakh crore in investment.
India achieved 100% census village electrification in April 2018, followed by universal household connectivity under Saubhagya. Advancing SDG 7, India has shifted from basic access to 24x7 reliable power under the Revamped Distribution Sector Scheme (RDSS), while targeting last-mile tribal homes through PM- JANMAN. Furthermore, initiatives like PM Surya Ghar empower households to generate clean rooftop solar power, reinforcing sustainable and self-reliant energy access nationwide.
Energy Intensity and Per Capita Energy Consumption:
Energy intensity measures the volume of energy required to yield one unit of GDP at constant prices, serving as a vital gauge of a nations macroeconomic efficiency. Meanwhile, Per Capita Energy Consumption (PEC) reflects total annual energy use divided by the mid-year population. While both metrics primarily track conventional energy streams, they can undercount non- conventional energy usage, particularly across rural regions.
Demonstrating sustained progress, Indias overall energy intensity fell to 0.1329 Mega Joules per rupee in FY 2024-25 (P). This steady reduction underscores growing productive efficiency, proving that India is extracting greater economic value relative to its energy input overtime.
Energy Intensity in India (Mega Joules Per Rupee) *
0.2556
P - Projected; Source: Energy Statistics India 2026, Ministry of Statistics and Programme Implementation
* The abrupt change in the Intensity figure from FY: 2022-23 onwards is due to shifting of base year of GDP from FY 2011-12 to FY 2022-23. The figures of the previous years will be updated once the back-series data of GDP will be finalised.
Per Capita Electricity Consumption
Indias per capita primary energy consumption increased from 22,629 Mega Joules/person inFY2015-16 to 28,300 Mega Joules/ person in F Y2024-25 (P), indicating a growing demand for energy.
Per Capita Primary Energy Consumption in India (Mega Joules/Person)
P - Projected; Source: Energy Statistics India 2026, Ministry of Statistics and Programme Implementation
Outlook
Outcomes of COP30: Turning Climate Pledges into Implementation
I leld in I lelem, I Ira/il, from November 10 to November 21,2025, the COP30 summit brought together over 190 countries in the Amazon to turn climate pledges into concrete execution. Building on the Baku framework, nations reaffirmed the goal to mobilise $1.3 trillion annually by 2035 and formally launched the Baku- to-Belem Roadmap implementation mechanics. The conference introduced the flagship Tropical Forests Forever Facility (TFFF) with $10 billion in initial pledges to reward forest conservation. Additionally, countries submitted updated Nationally Determined Contributions (NDCs) aligned with the 1.5 deg C threshold.
While the summit advanced nature-based solutions, several developing nations, including India, raised strong concerns over the slow disbursement of the $300 billion annual climate finance core target and persistent trade barriers under green industrial policy. Progress was made on operationalising Article 6 carbon markets and scaling up adaptation funding mechanisms. 1 .ooking ahead to COP31 in Ttirkiye, the global focus will shift toward monitoring early NDC execution, enforcing climate finance delivery, and ensuring a just, equitable transition for developing economies.
f \
India Goals
As India charts its path towards COP31 and beyond, it stands at the intersection of global climate ambition and developmental imperatives. Guided by People, Planet, Progress, India leverages domestic innovation to scale clean energy while championing climate finance equity and access for developing nations.
Key Steps in Indias Climate Action and Carbon Innovation Strategy
1. Long-Term Decarbonisation & Target Trajectory:
India remains committed to Net Zero emissions by 2070, supported by NDC milestones of 500 GW non-fossil capacity and a 45% reduction in emissions intensity by 2030.
2. Compliance Carbon Trading Framework: India is advancing its compliance Carbon Credit Trading Scheme (CCTS) under the Energy Conservation (Amendment) Act. establishing regulated carbon credit certificates (CCCs) across major industrial sectors.
3. Green Hydrogen & Clean Energy Expansion:
Backed by the National Green Hydrogen Mission and a non-fossil energy base reaching -297 GW (including 288 GW renewables), India is building global export capabilities in clean energy.
4. Equity-Driven Climate Finance Advocacy: Heading into COP31, India leads calls for accountable, grant- based climate finance and equitable delivery of the New Collective Quantified Goal (NCQG) for developing nations.
5. Adaptation & Infrastructure Resilience: India continues prioritising adaptation, allocating over 5% of GDP toward resilience in agriculture, water infrastructure, coastal management, and disaster risk reduction.
6. Demand-Side Action via Mission LiFE: India champions demand-side sustainability, driving global adoption of low-carbon behavioural choices and circular economy principles.
7. Multilateral Alliances & Climate Leadership:
Through leadership in the International Solar Alliance (ISA). Global Biofuels Alliance, and G77+China, India advocates for a just energy transition, technology transfer, and equity.
SWOT Analysis
Strengths
- Resource Security: Access to substantial coal, lignite, and water reserves, providing a dependable raw material base for continuous power output.
- Balanced Energy Mix: Deep operational footprint spanning fossil fuel extraction, conventional thermal generation, and clean energy projects.
- Proven Leadership: Experienced executive team with a strong track record in strategic execution and operational oversight.
- Financial Stability: Sustained revenue growth, steady profitability, and disciplined fiscal governance.
- Resource Conservation: Advanced hydrological and groundwater management practices ensuring efficient resource usage.
- Industrial Harmony: Collaborative labour relations maintaining a stable, motivated workforce and operational continuity.
- Open-Cast Mining Excellence: Extensive mastery i n large-
scale open-cast lignite extraction using modern specialised mining equipment (SME) technology.
- Targeted R&D Capabilities: In-house research focus driving innovation across mine exploration, spatial planning, and process technology.
- Long-Term Revenue Visibility: Revenue stability secured via pit-head power generation setups and long-term Power Purchase Agreements (PPAs).
- Contractual Mining Mastery: Demonstrated operational expertise in Mine Developer & Operator (MDO) frameworks and complex outsourced project execution.
Weaknesses
- Cost Inflation in Mining Operations: Mounting operational expenditures that squeeze operating margins and lower overall productivity.
- Adverse Strip Ratio Dynamics: Higher volumes of waste rock and topsoil (overburden) required to reach deposit seams, escalating extraction costs and straining equipment capacity.
Opportunities
- Rapid Urbanisation & Industrial Expansion: Surging demand for base-load power driven by ongoing nation-wide infrastructure development and city growth. -
- Commercial Power Trading: Revenue optimisation opportunities unlocked through dynamic energy exchange markets and strategic trading instruments.
- Rising Per Capita Consumption: Sustained growth in consumer electricity demand, reflecting nationwide economic development and rising living standards.
- Renewable Sector Investment: Favourable policy landscapes and financial incentives encouraging aggressive green energy project deployment.
- Universal Electrification Commitments: State-led initiatives aimed at expanding grid reliability and last-mile energy accessibility.
- Strategic Alignment with Atmanirbhar Bharat: Strong growth potential by prioritising indigenous technology, domestic supply chains, and localised equipment sourcing.
- Next-Generation Energy Platforms: Diversification into high-growth clean technologies, including green hydrogen, battery storage solutions (BESS), pumped hydro systems, and rare earth element extraction.
- Critical Minerals & Gasification Ventures: Strategic expansion into advanced resource processing, such as underground coal gasification (UCG), surface coal gasification (SCG), and strategic mineral exploration.
Threats
- Heavy Pumping & Drainage Expenses: High expenditures linked to dewatering operations that inflate overall operational overhead.
- Underutilised Asset Base: Sub-optimal capacity usage across power generation assets and mining pits, leading to reduced efficiency.
- Renewable Energy Transition Pressures: Accelerating clean-energy adoption and policy mandates threatening traditional thermal power market share.
- Land Acquisition & R&R Bottlenecks: Delays and cost overruns stemming from complex land procurement, higher compensation claims, and local displacement challenges.
- Global Supply Chain & Trade Disruptions: Geopolitical friction and international trade volatility impacting equipment sourcing and fuel supply reliability.
- Deferred Receivables & Liquidity Strain: Cash flow and working capital constraints caused by prolonged payment cycles from off-takers.
- Evolving Regulatory Compliance: Unpredictable shifts in environmental norms and power sector policies creating operational and financial compliance risks.
Company Overview
] Established in 1956, Navratna PSU NLC India Limited (NLCIL) stands as a premier enterprise in lignite extraction and power production nationwide. Having spearheaded innovations in brown coal mining, the organisation has broadened its footprint into coal mining, clean energy ventures. Environmental responsibility and sustainable development remain foundational pillars, reinforced by robust CSR programmes. NLCIL views local communities not as external stakeholders, but as an indispensable partner in its long-term growth story.
Mining Lignite Mining
- NLCIL operates 3 open-cast lignite mines at Neyveli of 28 MTPA capacity andoneatBarsingsar, Rajasthan of 2.10 MTPA capacity. Nationally, all-India lignite output reached 41.44 MT, with NLCIL contributing over half (24.06 MT).
Coal Mining
- NLCIL operates the 20 MTPA Talabira II & III OCP inOdisha and recently commenced coal production at the 9 MTPA Pachwara South Coal Block in Jharkhand in March 2026.
- Under commercial coal block auctions, NLCIL won North Dhadu(3 MTPA) in Latehar District, Jharkhand, Machhakata (30 MTPA), and New Patrapara (12 MTPA) in Angul District, Odisha.
- Talabira II & III produced a record Id. 14 MT and dispatched 17.69 MT in FY 2025-26, supplying linked plants like NTPL Tuticorin alongside merchant e-auctions.
- Project activities, mining plans, and statutory approvals are actively progressing, with commercial mine openings targeted around FY 2028-29 to FY 2029-30.
Critical Minerals
- NLCIL secured composite licenses for the Semhardih block (-428 MT limestone. -4 MT phosphorite) and the Raipura block (-170 MT limestone, -15 MT phosphorite) in Chhattisgarh. Tenders have been floated for detailed geological exploration.
- In June 2026 NLCIL Secured Two critical mineral blocks viz., Parvathapur Block and Govindpur Block in Sangareddy district of Telangana having deposits of Vanadium, Titanium, and Aluminous Laterite.
- Additionally, an Mol I was signed between PARC and NLCIL on August 6. 2025, to establish a pilot-scale demonstration facility for recovering rare earth elements (REE) from lignite fly ash. Tender for this project has been floated for engaging EPC contractor for the said project.
Power Generation
Thermal Power
- NLCIL operates four pit-head lignite thermal power stations at Neyveli aggregating 3,390 MW, alongside the 250 MW Barsingsar Thermal Power Station (BTPS) in Rajasthan.
- Operates a 2x500 MW coal-based Thermal Power Station at Tuticorin through subsidiary NLC Tamil Nadu Power Limited (89:11 JV between NLCIL and TNPGCL).
- Operates a 3x660 MW coal-based Thermal power station in Uttar Pradesh through subsidiary Neyveli Uttar Pradesh Power Limited (NUPPL) (51:49 JV between NLCIL and UPRVUNL).
- Reached a total operational thermal base of 6,620 MW, with a roadmap to reach 10,020 MW by 2030 anchored by the 3,200 MW Odisha Pithead TPS (Phase-I), 1,000 MW TPS-II 2 nd Expansion in Neyveli and 375 MW in Rajasthan.
Renewable Energy
- The Company operates 1,785 MW of total renewable assets, including 1.429 MW of solar power plants across Tamil Nadu and Andaman & Nicobar Islands, 51 MW wind power in Tirunelveli, Tamil Nadu, and 5 MW of rooftop solar.
- Fully commissioned the 300 MW Barsingsar Solar Project in Rajasthan in January 2026 under the CPSU Scheme.
- First CPSI I to cross 1 GW solar capacity in India and an active member of the International Solar Alliance (ISA).
- Achieved an all-time high renewable generation of 2.26 Billion Units (BU) in FY 2025-26.
- Wholly owned subsidiary NLCIndia Renewables Ltd. (NIRL) received LoAs for a 250 MW/500 MWh 151 :SS from TNGECL, 600 MW Solar + 1,800 MWh BESS from SECI, and 500 MWh BESS from PSPCL, 600MW SPP from BSUL,900MW SPP from GUVNL, 200MW WPP from SIiCI.
- Further NIRL has Won the bidding in the recent 200 MW Wind Tender from S.l VN. another 200 MW Wind tender from GUVNL, 50 MW 200 MWh BESS from WBSEDCL & 275MW BESS from GUVNL.
- Secured LoAs fora 200 MW wind project from S.IVN and a 450 MW ISTS-connected wind-solar hybrid project from NIPC.
- Through NIRL, Four New .IV Companies Incorporated viz., with NCR 1C (110 MW Solar), RUVNL (2000 MW Solar), APDCL (1000 MW Solar) and OREDA (1000 MW Solar Wind), to expand renewable presence across India.
- Transferred operational and under construction renewable assets to NIRL, with Government approval obtained for NIRL asset monitisation plan in F Y 2026-27.
- Targeting a total renewable capacity of 10,110 MW (-10.1 GW) by 2030, with 5,810 MW of projects currently under construction and active development.
Current Capacities
| Mining Capacity (50.10 MTPA) | Power Generation (8,405 MW) (Including JVs) |
| Lignite: 30.10 MTPA | Lignite Based: 3,640 MW |
| Coal: 20 MTPA | Coal Based: 2.980 MW |
| Solar: 1,734 MW | |
| Wind: .51 MW | |
| Planned Capacity Addition till 2030 | |
| Mining Capacity (104.35 MTPA) | Power Generation (20,130 MW) (Including JVs) |
| Lignite: 44.85 MTPA | Lignite Based: 4,015 MW |
| Coal: 58.50 MTPA | Coal Based: 6,005 MW |
| Critical Minerals: 1 MTPA | Solar: 9,709 MW |
Wind: 401 MW
- NLCIL targets a total capacity of 104.35 MTPA in Mining and 20,130 MW in Power Generation.
- Projected Capital Expenditure (up to 2030) of Rs1.01 Lakhcrore with a debt-equity ratio of 70:30 for Thermal & Mining projects and 80:20 for Renewable projects.
NLCIL has contributed significantly to the nations socioeconomic development for nearly seven decades. NLCILs strategy minimises environmental impact through eco-restoration, massive afforestation, rainwater harvesting, 100% fly ash utilisation, biodiversity conservation, adoption of green & environmentally friendly Circulating Fluidised Bed Combustion (CFBC) Technology, effective emission control measures and effective water energy management, conserving 7.27 MU of energy in FY 2025- 26. Independent agencies rated NLCILs ESG performance with a 61.2 CareEdge score and 59.0 ICRA score. In FY 2025-26, CSR investments reached Rs48.06 crore, benefiting over 9 Lakh people.
( \ Global Benchmark in Project Governance: IPMA Delta Level 3 Certification
NLC India Limited (NLCIL) became the first organisation in India to achieve the IPMA Delta Level 3 (Standardised) certification from the International Project Management Association. IPMA Delta assesses the overall project management maturity of an entire enterprise across three dimensions: individual competence, project management processes, and organisational governance. Achieving Level 3 (Standardised) confirms that NLCIL has institutionalised fully defined project, programme, and portfolio management standards that are consistently applied across its mining and energy verticals, directly supporting its Vision 2030 project expansion targets.
Key Safety Initiatives
- Safety and Health Management System Audit has been conducted in all the mines of NLCIL as per the guidelines ofMoC and uploaded in National Coal Mines Safety Report (NCMSR) portal ofMoC.
- Mobile Safety App- NLCIL Aran Mobile App launched for reporting of unsafe observations, near misses of all the units of NLCIL for needful compliance.
- Women employ inenti nthe mine: Separate SOPs were formulated.
- Blast free mining is also being practiced inBarsingsar mines for both ()l 5 and I ignite through Conventional Mining Equipment. At Talabira Mines, blast free mining is done in case of extraction of coal by the use of Surface miner.
- Safety in Conveyor belts:
- Pre-start Audio-Visual Alarm -Conveyor Start Siren & Hooter, Pre start Audio Visual Alarm (in local Language through Public address system) installed in Drive heads to alert the workmen.
- Audio Visual Blinker (AVB) system: AVB system installed at middle of the conveyor belt.
- LOTO Indicator lamp installed in conveyor Systems.
- Digital LOTO System: RFID-SMART LOTO system has been installed in Mine-II for ensuring safety.
- Thermal Safety:
- Safety Audit of Thermal Power Plants are conducted by National Safety Council once in every two years and the observations have been implemented in a proper way.
The Company adheres to high standards in safety, quality, energy
efficiency, clean mining, and emission controls, fulfilling DPE
Guidelines on Sustainable Development for CPSEs.
Strategic Energy Roadmap
In alignment with Indias goal of achieving Viksit Bharat 2047 and its national commitment to Net-Zero emissions by 2070, NLCIL is driving a strategic transition to support the national target of 500 GW of non-fossil capacity by 2030, NLCILs Corporate Plan 2030 targets a 20,130 MW power portfolio (with 10.11 GW from renewables) and a total mining capacity exceeding 100 MTPA. Extending this roadmap to 2047, NLCIL envisages increasing its renewable energy share to 77% of its generation portfolio. This long-term transformation is supported by key clean technology initiatives.
Business Performance
In FY 2025-26, NLC India Limited delivered a record-breaking performance, achieving its highest-ever annual coal output at 19.14 Million Tonnes from Talabira II & III OCP. Standalone power generation reached 19.20 Billion Units (28.95 BU on a consolidated basis), including an all-time high 2.26 Billion Units from green energy. Reinforcing its aggressive infrastructure and capacity expansion, NLCIL achieved its highest-ever annual capital expenditure of 79,131 crore.
Portfolio-wise Major Achievements Mining
- Talabira-II & III OCP achieved its highest-ever annual coal production of 19.14 MT and dispatches of 17.69 MT in FY 2025-26.
- Achieved coal production commencement at the 9 MTPA Pachwara South OCP in Jharkhand in March 2026.
- At Talabira II & III OCP, the Digital Logistics Management System across mining operations for real-time dispatch monitoring and transparency is implemented.
- Strategic coal supply tie-ups from Talabira-II & III OCP to major power producers, including DVC (2.0 MTPA tinder a 1-year MoU) and NTPC thermal stations under MoUs.
Thermal
- NUPPL (3 x 660 MW ) Ghatamphur Thermal Plant achieved Commercial ()peration of all the three Units since June 2026.
- TPS2 Expn Unit-1 FBHE Modification was completed successfully in May 2025, and the average monthly availability improved to 90% and touched 100% in December 2025.
- BTPS (2 125 MW) stands FIRST in ranking for the Annual PLF (73.35 deg o) among all-India Lignite-Based TPS. against the overall National Plant Load Factor of 65.57% registered for coal and lignite-based power stations in FY 2025-26, as well as standing No. 1 in Monthly PLF ranking four times in FY 2025-26.
?– NTPL recorded its second-highest Plant Availability Factor (PAF) of89.87%, surpassing theCERC norm of 85% and with a 6.5% increase in Plant Availability Factor i PAF % YoY).
- NLCIL, including its Joint Venture Units, achieved its highest- ever Annual Thermal Power generation i including surrender) of 33,174 MIJ m FY 2025-26, surpassing the previous best record of 29,983 MU.
- Contract signing between BHEL and NLCIL was completed on September 17, 2025, for EPC works of the 3x800 MW NEC Talabira Thermal Power Project in Odishai Phase-I), and construction activities are in progress. For NTTPP Phase-II (1x800 MW) MolIF&CC granted ToR on July 3,2025, for EIA studies towards EC fulfilment, targeting the award of contract in FY 2026-27. MoP has allocated the remaining 400 MW to Odisha (Home State) via letter dated February 10,2026, over and above the initial PPA signed with GRIDCO for 400 MW.
- BTPS (2x125 MW) commenced biomass addition on March 16, 2026, in compliance under "SAMARTI1 - Sustainable Agrarian Mission on use of Agri-Residue in Thermal Power Plants" as per the Ministry of Power.
- Tender floated for TPS-I1 Second IIxpansion Project at Neyveli (2 500 MW) on a Single EPC package through the NeAT portal on ICB basis on December 10, 2025, with the bid submission date extended till September 2026.
- Feasibility study to set up a 375 MW (3 125 MW) lignite-based thermal power plant with three separate packages for achieving a competitive tariff was taken up in continuation to the formation of NRPL at Gurha, Rajasthan with RV11N
- An MoU was signed between BARC & NLCIL on August 6, 2025, for "Setting up a pilot-scale demonstration facility for recovery of rare earths from lignite coal fly ash," and approval for tender floating is in progress.
- An MoU was signed between IIT Madras & NLCIL on May 14. 2025, for a collaborative research programme on "C(), Capture & Regeneration Using Ionic Liquids (ILs) and Ionic Liquids- Amine Blend Systems."
In FY 2025-26, NLCIL delivered strong capital execution across
its power portfolio. Capital expenditure reached an all-time high
of Rs9,131 crore, with thermal and renewables-linked project
investments forming the core driver for accelerating Ghatampur
construction, 300 MW Solar Project execution, Talabira site development, and operational asset upgrades.
These achievements demonstrate NLCIUs focus on timely project delivery, efficiency enhancement, and capacity growth across lignite and coal-based assets. By combining operational excellence with strategic investments, the Company reinforced its position as a leading power producer, ready to meet the nations growing energy demands.
Renewable Power and Sustainability
- Achieved an all-time high annual green energy generation of 2.26 BU in FY 2025-26, mitigating 1.9 million tonnes of CO. emissions.
- Fully commissioned the 300 MW Barsingsar Solar Project in Rajasthan in January 2026, marking NLCILs largest singlelocation solar plant.
- Commissioned 4 MW Roof Top Solar project across different locations ofNeyveli, NTPL, Barsingsar & NUPPL
- Awarded contracts for internal EV charging stations (5 locations) and rooftop/floating solar installations across company premises.
Financial and Strategic Growth
?– Reached new record market highs with stock price touching Rs387+ and market capitalisation crossing Rs 50,000+ crore following strong operational and financial execution.
- Raised a $200 million Japanese Yen term loan via ECB to fund ongoing project expansion.
- Loan agreement signed with KfW Germany for $100 Million Euro to fund Renewable projects.
- Received the "NIL Comments" report from the Comptroller and Auditor General of 1 ndia (C&AG) for both standalone and consolidated financial statements for the Financial Year 2025-26
- Maintained 100%+ collection efficiency against billing, significantly liquidating aged power D1SCOM dues and strengthening operational cash flows.
- Institutionalised the board-level ESG Committee to oversee enterprise sustainability, climate risk management, and decarbonisation strategies.
- Declared and distributed interim and final dividends in alignment with DPE guidelines, continuing a long track record of uninterrupted payouts.
- Successfully filed True-Up Tariff Petitions for the 2019-24 control period and Multi-Year l ariff (MYT) Petitions for 2024- 29 with CERC for all thermal power stations and linked mines (including subsidiaries) prior to statutory deadlines.
- Reduced annual finance costs by over RsI50 crore through strategic debt refinancing and interest rate optimisation across NLCIL, NTPL, and NUPPL.
- Streamlined finance operations through team centralisation, end-to-end automation of vendor and employee payments, and expanded execution via the TReDS platform for MSME suppliers.
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD.)
Projects Won by NLCIL through Competitive Bidding
Mining
?– Machhakata Coal Mine. Angul. Odisha: Received approval of the Mining Plan on 17 March 2026. Steps were initiated for obtaining Environment and Forest Clearances. Land acquisition under the Coal Bearing Areas (Acquisition and Development) Act, 1957 progressed with notifications under Section 4(1) issued on 6 June 2025. Section 7( 1) on 17 December 2025 and Section S(2) on 25 February 2026.
- New Patrapara South Coal Mine 112 MTPA i. Angul, Odisha: Received final approval of the Mining Plan and Mine Closure Plan on 5 February 2026. Steps were initiated for obtaining Environment and Forest Clearances. Land acquisition under the Coal Bearing Areas (Acquisition and Development) Act, 1957 commenced with notification under Section 4i 1) issued on 11 November 2025.
?– Critical and Strategic Minerals: NLCIL emerged as the Preferred Bidder for the Semhardih Phosphorite & Limestone Block and Raipura Phosphorite & Limestone Block in Balod district. Chhattisgarh. in the Tranche-V auction conducted by the Ministry of Mines on 27 May 2025. Letters of Intent for Composite Licence were issued by the Government of Chhattisgarh on 2 September 2025. and Composite Licences were subsequently granted on 24 April 2026 for undertaking detailed geological exploration in both blocks.
- NLCIL also Secured Two critical mineral blocks viz.. Parvathapur Block and Govindpur Block in Sangareddy district of Telangana having deposits of Vanadium, Titanium, and Aluminous Laterite in June 2026.
Renewables
- Received Letter of Award (LoA) on February 28,2025, from S.IVN Limited lo develop a200 MW Wind Power Project al a discovered larillof 73.74/kWh.
- Wholly owned subsidiary NLC 1 ndia Renewables Ltd. (NIRL) secured LoA on June 22,2025, for a 250 MW 500 MW h Battery I Inergy Storage System (BESS) project under the Viability C lap Funding (VGF) scheme via tariff-based competitive bidding from TNGECL (BESPA signed with TNPDCL for 12 years).
- Received Letter of Award (LoA) from NTPC Limited on June 27.2025, lo establish a 450 MW ISTS-connected Wind-Solar 1 lybrid Power Project lo supply hybrid power to NTPC for 25 years under a Power Purchase Agreement (PPA).
Eco-friendly Measures Taken by NLCIL
- Commissioned the Overburden (OB) lo Sand Processing Plant al Mine-1 A and Mine-1 to produce construction-grade sand.
- Advancing plans lo develop 2x50 MW Pumped Storage Projects in Neyveli mine voids (Feasibility Report prepared), along with large-scale projects planned at Palar-Porathalar
(4x275 MW/1,100 MW) in Tamil Nadu and Salandi (500 MW i m Odisha.
?– Implemented construction of the 50 MW Solar Power Project at Neyveli for clean energy generation.
- Executed the Letter of Award i LoA i for establishing a pilot 4 MW Solar-Powered Green Hydrogen Project i PEM electrolyser) at Neyveli.
?– Installing Flue Gas Desulphurisation iFGDi systems across thermal units, including NNTPS.NTPL. andNUPPL Ghatampur, to strictly comply with national SOx emission standards.
Capex FY 2025-26
| Particulars | Budget 2025-26 | Actual 2025-26 | % Actuals w.r.t. |
| crore) | crore) | Budget 2025-26 | |
| NLCIL- STANDALONE | 72,678.31 | 74,615.54 | 172.33% |
| NLCIL- CONSOLIDATED | 75,078.31 | 79,130.50 | 179.79% |
Way Forward (FY 2026-27)
- Ramp-up of coal production al Pachwara South OCP (9 MddA
normative capacity) as per the approved mining plan lo meet
the dedicated fuel requirement for the Ghatampur Thermal
Power Project.
- Commissioning of the following renewable power projects:
- 600 MW Solar (GU VNL, Khawda Solar Park, Gujarat),
- 250MW BESS in Tamil Nadu (TNGCEL).
- 50 MW Wind in Gujarat.
- 200 MW Solar in Gujarat
- 100 MW Solar in Gujarat
- Under-Construction & Development Pipeline:
- On-Site Solar: 1 MW Floating Solar in Neyveli.
- Gujarat Solar Expansion: 300 MW (100 MW + 200 MW) utility-scale solar projects in Gujarat.
- Rajasthan RE Joint Venture: Development of the 810 MW solar power project in Rajasthan in partnership withRRVUNL.
- NLC India Renewables Limited has also secured the in-principal approval from the Government of Odisha (GRIDCO) for development of 2x49.5 MW Wind Power Project in the state of Odisha. The project is proposed to set up at Papadahandi in Nabarangpur District of Odisha.
- NLC India Renewables Limited has also secured the in-principal approval from the Government of Odisha (GRIDCO) for development of 750 MW Pumped storage power Project in the state of Odisha.
190 70 th Integrated Annual Report FY 2025-26
- STATUTORY REPORTS
Financial Performance
A detailed discussion and analysis of financial statements is furnished below. Reference to Note(s) in the following paragraphs refers to the Notes to the Standalone Financial Statements for the Financial Year 2025-26 placed elsewhere in this report.
The items of the Balance Sheet are as disc ussed below:
1. Property, Plant & Equipment (PPE), Roll Asset, Intangible Asset, Capital Work-in-Progress and Assets under Development (Note-2 to Note-6):
As at March 31 st
Particulars
| 2026 (Rs crore) 1 | 2025 crore) | % Change | |
| Gross Block of PPE (Note-2) | 24,919.20 | 28,601.21 | -12.87% |
| Net Block of PPE (Note-2) | 14,010.68 | 17,376.73 | -19.37% |
| Net Block - RoU Asset (Note-3) | 148.70 | 76.52 | 94.33% |
| Net Block of Intangible Assets (Note-4) | 249.61 | 211.23 | 18.17% |
| Capital Work- | 4.864.40 | 4,319.55 | 12.61% |
in-Progress
(Note-5)
During the year, the gross block of Property, Plant and Equipment (PPE) decreased by Rs3,682.01 crore, while the net block decreased by Rs3,366.05 crore. The reduction in both the gross and net block of PPE was primarily attributable to the transfer of solar assets to NIRL, a wholly owned subsidiary, pursuant to the Business Transfer Agreement (BTA), as well as depreciation charged on assets during the year. These reductions were partially offset by the capitalisation of the
300 MW Barsingsar Solar Project, SMK investments in Mine IA and Mine II. FBI IE modifications in TPS II Expansion, and the acquisition of lands in the Neyveli and Talabira Mines.
The net block of Right-of-Use (ROU) Assets increased by Rs72.18 crore during the year, primarily due to the addition of Talabira township land. This increase was partially offset by the periodic depreciation of ROU assets.
The net block of Intangible Assets increased by Rs38.38 crore, mainly on account of the allotment fees paid for the North Dhadu Coal Project. The increase was partially offset by the periodic amortisation/depreciation of intangible assets.
CWIP increased by Rs544.85 crore during the year, primarily due to expenditure incurred on the Talabira Thermal Power Project, land acquisition for Talabira Mines, FGD Project of NNTPS, and 50 MW Solar Project (Mine-II Captive). This increase was partially offset by the capitalisation of the 300 MW Solar Project at Barsingsar.
2. Non- Current Financial Assets (Note-7) and other Non-Current Assets (Note-8):
a. Investments in Subsidiaries, Associate and Joint Venture Companies (Note-7a)
The break-up of investments in Subsidiaries. Associate and Joint Venture Companies is as follows:
| Particulars | As at March 31 st | crore) |
| 2026 | 2025 | |
| Investment in Subsidiaries | 8,398.52 | 5,086.24 |
| Investment in Joint Venture | 0.01 | 0.01 |
| Investment in Associates | 5.27 | 5.27 |
NLC India Limited
191
The change in Investments in subsidiaries is on account of:
- Additional subscription to equity shares Rs10 per Share of 5312.24 crore (PY: 5331.75 crore) ofNUPPL, through a right issue. However, the percentage of holding remains unchanged.
- Additional investment of Rs3,000.00 crore (PY 5119.65 crore) in NLC India Renewable Limited (NIRL), a wholly owned subsidiary ofNLCIL.
b. Non-Current Trade Receivables (Note-7b)
As per the Late payment surcharge rules notified by Ministry of Power on June 3 rd , 2022, one DISCOM has opted for Rs734.56 crore under the interest-free installment scheme within the specified cut-off date. The dues of such beneficiary have been presented at fair values as per the requirements of Ind AS 109, and the non-current balances of dues as at 31 st March of the current year and the previous year are as follows:
c. Non-Current Loans (Note-7c)
The Unsecured Loans to subsidiary include, InterCorporate Loan (SMBC- External Commercial Borrowing) given to NIRL on cost to cost basis.
The secured loans and unsecured loans to employees include house building loans, vehicle loans, multipurpose loans, etc. The loans outstanding as at 31 st March of the current year and the previous year are as follows:
| As at March 31 st C crore) | ||
| Particulars | ||
| HI 2026 HI | ||
| Loans to Related Parties | 513.35 | - |
| Loans to employees | 9.64 | 7.85 |
d. Other Non-Current Financial Assets (Note-7d) Mine Closure Deposit:
As per the guidelines from Ministry of Coal. Government of India for preparation of Mine Closure Plan, Escrow Accounts have been opened in the name of "Coal Controller Escrow Account NLC India Limited" for each captive mine and the balances held in these escrow accounts are presented as Mine closure deposit.
As per the earlier mine closure guidelines dated 29 th May, 2020, up to 50% of the total deposited amount including interest accrued in the escrow account shall be released after every five years in line with the periodic examination of the closure plan. During the year, a sum ofRs 4.39 crore was released pursuant to an order received from the Coal Controller in respect of Barsingsar Mine for the period 2016-17 to 2020-21.
Interest earned on the escrow account is added to the mine closure deposit account on renewal. All the deposits are renewed every year.
Derivative Asset:
The Derivative Asset represents the fair value of the Call Spread derivative contract entered with ICICI bank for hedging the foreign currency exposures associated with the SMBC External Commercial Borrowing (ECU). As the option premium under the Call Spread structure is payable on a deferred basis, its fair value is determined and recognised as a derivative asset at the reporting date.
e. Other Non-Current Assets (Note-8)
The increase in capital advances is primarily attributable to advances paid for the Talabira Thermal Power Project, acquisition of land for the Talabira and Neyveli Mines, and the 200 MW Solar Power Plant Project in Gujarat during the year. These advances were made to support the ongoing development and expansion of the Companys mining and power generation infrastructure.
3. Current Assets (Note-9 to Note-12):
The current assets as at 31 st March, 2026 and 31 st March, 2025 and the changes therein are as follows:
| Particulars | As at March 31 C crore) | % Change | |
| 2026 | 2025 | ||
| Inventories (Note 9) | 1,612.29 | 1,370.04 | 17.68% |
| Investments (Note 10a) | 0.61 | 1.40 | -56.43% |
| Trade Receivables (Note 10b) | 1,856.83 | 2,460.41 | -24.53% |
| Cash and Cash Equivalents (Note 10c) | 90.13 | 163.47 | -44.86% |
| Bank balances other than cash and cash equivalent (Note lOd) | 125.96 | 125.72 | 0.19% |
| Loans (Note 10c) | 319.41 | 714.4 | -55.29% |
| Other Financial Assets (Note 101) | 23.32 | 26.28 | -11.26% |
| Current Tax Assets (Net) (Note 11) | 0 | 134,2 | -100.00% |
| Other Current Assets (Note 12) | 1,144.29 | 1,256.92 | -8.96% |
| As at March 31 st (X crore) | ||
| Particulars | 21126 \u25a0 | |
| Unsecured - Considered Good | - | 58.03 |
| Particulars | As at March 31 st (X. crore) | |
| 811 2026 Hi | 2025 | |
| Mine Closure Deposit | 657.86 | 604.31 |
| Derivative Asset | 29.13 | - |
| Particulars | As at March 31 st C crore) | |
| 2026 E | ||
| Capital Advances | 2,723.71 | 1,658.40 |
| Advances Other than Capital Advances | - | 123.5 |
a. Inventories (Note-9)
The increase in the inventory is mainly on account of the i ncrease i n the closi ng stock of Coal and other regular stores & spares like conveyor spares. Metals & Electrodes, Fuels, Pipes and conveyor spares etc., during the current year compared with the previous year.
b. Investments (Note - 10a)
Reduction in Investments Mutual Funds during the current year compared with the previous year.
c. Trade Receivables (Note-lOb)
Trade receivables have decreased primarily due to the realisation of long-outstanding dues, favourable CERC orders, and a reduction in the loss allowance on trade receivables consequent to the realisation of outstanding amounts.
d. Cash and Cash Equivalents (Note-lOc)
The movement in cash and cash equivalents is on account of maturity of short-term deposits. The deposits are generally maintained for a period of less than three months to ensure liquidity.
e. Bank balances other than cash and cash equivalent (Note-lOd)
There were no material changes during the year.
f. Loans (Note-lOe)
During the current financial year, based on the short-term funding arrangement with the subsidiaries, the Company has extended loan to NUPPL, NIGEL & NIRL amounting to 7290 crore (PY- 7555 crore), NIL (PY - 798.55 crore) & 7 7.00 crore (PY- 741.94 crore) respectively, as on March 31,2026.
The loan balances to employees mainly represent secured loans of various nature such as Elouse Building 1 man, Car/ Scooter Loan, and unsecured loans such as Multipurpose 1 mans, etc., during the year.
g. Other Financial Assets (Note-lOf)
There were no material changes during the year.
h. Other Current Assets (Note-12)
The decrease in other current assets is primarily attributable to the receipt of deposits previously made with the VAT authorities during the current year. This was partially offset by the creation of plan assets for earned leave obligations based on an actuarial valuation conducted during the year.
4. Assets held for Sale (Note-13):
All units of Thermal Power Station -I (TPS -1) have been retired from operation subsequent to 30.09.2020. The net block of TPS-I assets as on 31.03.2024 were reclassified as
Assets held for sale as per the requirements of IND AS 105. Estimated net sale proceeds ofthe retired assets is expected to be above the residual value of assets appearing in the books.
NEC India Limited issued a Letter of Award dated 30 March 2023 for sale ofthe decommissioned TPS-I plant for a total consideration of 7600.09 crore to M/s. Priya Blue Industries Pvt Limited. The entire lot of Plant & Machinery including Civil Structures has been divided into Twelve Segments keeping in view the locations and ease of dismantling and lifting of material ofvarious segments. Till 31.03.2026. NLCIL received amount for four segments amounting to 7238.20 crore and sale order has been issued for three segments.
During the year written down value of assets amounting to of 7 5.93 crore has been disposed off and profit on the same amounting to 789.34 crore has been accounted.
5. Regulatory Deferral Account Debit Balances (Note-14):
Expense/income recognised in the Statement of Profit & Loss, to the extent recoverable from or payable lo the beneficiaries in subsequent periods as per CERC Tariff Regulations, is recognised as Regulatory deferral account balances. The Company reviews its regulatory balances at each reporting date, and the adjustments arising from the above are adjusted inregulatory deferral balances from the year in which the same becomes recoverable from or payable lo the beneficiaries.
Regulatory deferral account debit balance consists of various incomes which accrue lo the Company from its 1)1 SCOMs due to various actions ofthe Regulator.
During the current financial year, the regulatory account balance has increased by 7338.96 crore as compared to the previous financial year, mainly due to the following -
a. As per CERC regulations 2024-29, security expenses, water charges and capital spares will be allowed separately after prudence check. By considering the
regulations, regulatory income ofRs 137.06 crore in respect of those charges for the year ended 31 st March 2026 are accounted in regulatory deferral account debit balances. Regulatory Asset cumulative balance in this regard as on 31.03.2026 is Rs 312.81 crore.
b. As the Company continues to bill beneficiaries based on the latest available Tariff Order applicable for the previous control period (2019-24). in accordance with the regulations, until the Tariff Order for the current control period (2024-29) is issued. During the year O&M difference amounting to Rs 119.21 crore arising between last approved 2019-24 tariff order in respect of Thermal power plants and normative O&M applicable for the current control period 2024-29 is considered under regulatory deferral account debit balances. Regulatory Asset cumulative balance in this regard as on 31.03.2026 isRs 187.51 crore.
c. The Company undertakes concurrent Mine Closure activity. In line with the Mine Closure Guidelines issued by Ministry of Coal, Gol, actual expenses incurred on mine closure up to a maximum of 50% of the Mine Closure Deposit along with interest in Escrow Account can be withdrawn on verification in every five years. Further, an amount ofRs 32.84 crore (PY: Rs 23.92 crore) has been considered as regulatory income/assets based on the revised mine plan. Regulatory Asset cumulative balance in this regard as on 31.03.2026 isRs 125.08 crore.
d. Exchange differences (KfW Loan) arising from settlement/translation of monetary item denominated in foreign currency to the extent recoverable from or payable to the beneficiaries in subsequent periods as per CERC Tariff Regulations are recognised on an undiscounted basis as Regulatory deferral account debit/ credit balance. Accordingly, an amount ofRs 170.34 crore for the year ended March 31, 2026 has been accounted for as Regulatory deferral account debit balance (PY: Rs 120.48 crore).
6. Total Equity (Note-15 & Note-16):
The total Equity of the Company at the end of the financial year 2025-26 increased to Rs19,270.18 crore from Rs17,465.17 crore in the previous year, an increase of 10.33%. The major reasons for the same are tabulated below:
| Particulars | Total Equity (Rs crore) | Book Value per Share (Rs) |
| Opening balance as on | 17,465.17 | 125.95 |
| 1 st April, 2025 | ||
| Add: Profit for the year | 2,512.20 | 18.12 |
| Less: Appropriations of Dividend | 707.19 | 5.10 |
| Balance as on 31 st March, 2026 | 19,270.18 | 138.97 |
The President of India holds 1,00,11,56,562 of shares constituting 72.20% of total share capital and the remaining 27.80% shares are held by Public & Domestic Institutional
Investors as on 31.03.2026.
7. Non-Current and Current Liabilities:
| Details of Schedules | 31 st March, 26 Bj (Rs crore) ^11 | 31 st March, 25 (Rs crore) | Difference |
| Long-term borrowings including current maturities of long-term borrowings (Note-17a & 21a) | 6,511.83 | 7.524.97 | -1,013.14 |
| Lease Liabilities (Note-17b & 21b) | 24.46 | 36.38 | -11.92 |
| Other Non-Current Financial Liabilities (Note-17c) | 422.3 | 245.89 | 176.41 |
| Provisions (Non-Current) (Note-18) | 132.3 | 152.54 | -20.24 |
| Deferred Tax Liabilities (Net) (Note-19) | 2,345.67 | 3,867.49 | -1.521.82 |
| Other Non-Current Liabilities (Note-20) | 771.78 | 767.33 | 4.45 |
| Current Borrowings excluding current maturities of long-term loan (Note-2 la) | 3,645.53 | - | - |
| Current Trade Payable (Note-2 lc) | 777.96 | 1,233.62 | -455.66 |
| Other Current Financial Liabilities (Note-2 Id) | 391.44 | 657.49 | -266.05 |
| Other Current Liabilities (Note-22) | 1,601.68 | 2,057.71 | -456.03 |
| Provisions (Current) (Note-23) | 966.15 | 1,209.93 | -243.78 |
| Current Tax Liabilities (Net) (Note -24) | 185.88 | - | 185.88 |
The details of Non-Current and Current Liabilities are discussed below:
a. Long-term borrowings including Current maturities of long-term borrowings (Note-17a & 21a)
| Particulars | 31-Mar-26 B (Rs crore) gj | 31-Mar-25 crore) |
| Borrowings in non-current financial liabilities (Note-17a) | 5,960.32 | 5,006.74 |
| Current maturities of non-current borrowings included in current liabilities (Note-21a) | 551.51 | 2,518.23 |
| Total borrowings | 6,511.83 | 7,524.97 |
The reduction in total borrowings is mainly due to the repayment ofNLCIL Bonds series -II 2020 and series -I 2021. project-specific loans and transfer of 709 MW loan due to BTA, which is partially offset by External Commercial Borrowings taken during the year.
b. Lease Liabilities (Note-17b & 21b)
To meet ils operational requirements, including maintaining offices and guest houses at various locations, leasing land for the construction of townships, providing vehicles for official use, the Company lias entered into various lease agreements with different parties. The lease liability represents the present value of future lease payments outstanding as at 31 March 2026. The reduction in the lease liability was primarily attributable to the transfer of lease assets to NIRL, a wholly owned subsidiary, pursuant to the Business Transfer Agreement (BTA), as well lease payments during FY 2025-26.
c. Other Non-Current Financial Liabilities (Note-17c)
Other non-current financial liabilities represent liabilities related to capital expenditure commitments. These liabilities increased by Rs 176.41 crore in FY 2025-26. primarily due to various projects being tinder construction during the t ear.
d. Provisions (Note-18)
The non-current portion of the Retirement Travel Allowance (RTA) provision has been classified under this head. The movement in the balance during the year is primarily due to the impact of the actuarial valuation carried out at the reporting date.
e. Deferred Tax Liabilities (Net) (Note-19):
Deferred Tax Liabilities (Net) decreased from Rs3,867.49 crore as at 31 March 2025 to Rs2,345.67 crore as at 31 March 2026. The net decrease of Rs1,521.82 crore during FY 2025-26 was primarily attributable to the transfer of Deferred Tax Liability (DLL) of Rs1.079.59 crore from NIRL pursuant to the Business Transfer Agreement (BTA), and the reversal of DLL amounting to Rs419.35 crore in the books ofNLCIL consequent to the change in the applicable tax rate.
f. Other Non-Current Liabilities (Note-20)
Non-current liabilities increased by Rs4.45 crore during FY 2025- 26, primarily due to an increase in mine closure liabilities on account of mine closure plan. This increase was largely offset by the transfer of deferred income balances relating to the 10 MW. 20 MW. and 130 MW solar power projects to NIRL pursuant to the I Husiness Transfer Agreement (BTA).
g. Current Borrowings excluding current maturities of long-term loan (Note-21a)
Current borrowings increased by Rs 3,645.53 crore on account of T-bill and commercial paper.
h. Current Trade Payable (Note-21c)
The Trade Payables have decreased by Rs455.66 crore during the current financial year mainly on transfer of Solar Assets & liabilities on account BTA.
i. Other Current Financial Liabilities (Note-21d)
Other financial liabilities comprise current financial obligations such as liabilities towards capital purchases, unclaimed dividends, and accrued interest on both long-term and short-term borrowings.
The balance decreased by Rs266.05 crorc during FY 2025-26. primarily due to the repayment of current capital liabilities and the reduction in accrued interest consequent to the redemption/repayment of bonds during the year.
j. Other Current Liabilities (Note-22)
Other current liabilities include unutilised revenue grant, advances & deposits, and other liabilities w.r.t employees, statutory, etc. The liabilities has reduced by Rs456.03 crore in the current financial year, mainly due to Business Transfer Agreement for solar assets and liabilities transfer to NIRL and settlement of withheld dues relating to vendors.
k. Provisions (Note-23)
The current portion of provisions decreased during FY 2025- 26, primarily due to a reduction in provisions relating to Post-Retirement Medical Amenities (PRMA) and earned leave liabilities based on the latest actuarial valuation. This decrease was partially offset by the provision for differential mining charges and HPC wages pertaining to Talabira Mines, which remain under dispute.
8. Regulatory Deferral Account Credit Balances (Note-25):
The amount under regulatory deferral liabilities as on 31.03.2026 relates to the impact arises out of various regulatory orders for the previous tariff periods:
a. TPS II - Following APTELs favourable order and CERCs subsequent final order allowing actual SFC for energy charge computation and inclusion of the residual value of LEP assets in capital cost, the Company reversed the regulatory deferral liability ofRs 128.41 crore during FY 2025-26.
b. Reg ulatory liability has been provided towards sharing of Non-tariff income arising from sale of lignite for an amount ofRs 65.99 crore during the year in respect of I Parsing sar mines on account of outside lignite sales.
c. Based on CERCs orders relating to the tariff period 2009-14, the Company raised debit notes of Rs694.33 crore on TANGEDCO, including interest of Rs417.63 crore. Although TANGEDCO challenged the interest component, both the Madras High Court and CERC provided favorable directions to the Company. Subsequently, APTEL directed TANGEDCO to pay 5()% of the disputed amount pending final adj udication. Considering these developments and managements assessment of recoverability, the Company reversed the regulatory deferral liability of Rs417.63 crore during FY 2025-26.
d. In FY 2022-23, the Company billed Rs386.5I crore to various DISCOMs towards income tax recoverable under the CERC Tariff Regulations in relation to payments made under the Vivad Se Vishwas Scheme (VSVS), 2020. While Rs68.39 crore has been realised, the balance amount remains under dispute and is subject to ongoing litigation involving various DISCOMs. Recent court orders from the Madras, Kerala, and Karnataka High Courts have directed the parties to approach CERC for adjudication, and the Company has accordingly initiated proceedings before CERC. Considering that the matter remains sub judice, the Company has continued to recognise a regulatory deferral liability of Rs386.51 crore, along with accrued interest of Rs25.06 crore, resulting in a total regulatory deferral liability ofRs411.57 crore as of 31 March 2026.
e. Pursuant to BTA, Assets and liabilities relating to Solar Projects has been transferred toNIRL.
9. Total Income (Note-26 & Note-27)
The major reasons for variations in Revenue from Operations from the previous year are briefly explained below:
| SI. No. Particulars | FY 2025-26 B (Rs crore) m | FY 2024-25 C crore) | Change C crore) |
| A. Revenue | |||
| 1 Sale of Power | 7,611.79 | 7,323.59 | 288.20 |
| 2 Sale of Lignite | 640.96 | 604.76 | 36.20 |
| 3 Sale of Coal | 2,522.51 | 2,246.39 | 276.12 |
| 4 Fly Ash & Other By-products | 99.80 | 89.58 | 10.22 |
| 5 Consultancy & other services | 42.85 | 40.72 | 2.13 |
| 6 Less: Transfer to CWIP & Rebate | 53.99 | 19.26 | 34.73 |
| Revenue from Operations | 10,863.92 | 10.285.78 | 578.14 |
| B. Other Income | |||
| 1 Interest on deposits, loans to Subsidiaries, loan to employees & others | 466.79 | 194.06 | 272.73 |
| 2 Provisions written back | 219.86 | 259.12 | -39.26 |
| 3 Dividend from Subsidiary Companies and JVs | 234.18 | 194.74 | 39.44 |
| 4 Others (Xet off transfer to CWIP) | 250.2 | 553.46 | -303.26 |
| Total Income | 1,171.03 | 1.201.38 | -30.35 |
A. Revenue from Operations (Note-26):
(a) The revenue from sales of Power has increased by
Rs 288.20 crore mainly due to:
- During the current year. CERC approved NLCILs petition to treat the Mineral-Bearing Land Tax as a statutory charge and include it in the landed cost of lignite for recovery through Energy Charges (ECR). Pursuant to CERCs order dated 15.01.2026, NLCIL recognised T379.07 crore as recoverable di fferential Energy Charges for the period April 2025 to March 2026.
- During the FY 2024- 25. based on the CERC review petition order received for Neyveli Mines w.r.t control period FY 2014-19 for principal amount of Rs 375.93 crore credit note to DISCOMS towards billed vs. revised Truing up order.
- During the FY 2024- 25, Power sales decreased by Rs392.42 crore due to the sharing ofNon-Tarifflncome gains from lignite e-auction sales with Discoms for the control period 2019-24. This includes a reduction of Rs71.51 crore relating to NNTPS, TPS I Expansion, TPS II, and TPS II Expansion (Mine IA lignite e-auctions) and Rs320.91 crore relating to the Barsingsar Unit (Barsingsar lignite e-auctions).
- The increase of above power sales is partly offset by reduction of power export by 2152.72 MIJ as compared to previous year and favourable CERC orders during the previous year.
(b) Revenue from lignite sales increased by Rs36.20 crore, primarily due to a higher average realisation per tonne from TAQA and Barsingsar lignite e-auction sales. The increase was partially offset by a reduction m the quantity of lignite sold during the period.
(c) Revenue from coal sales increased by 7276.12 crore, primarily due to higher e-auction coal sales and the impact of credit notes issued to NTPL in the previous year towards sharing of non-tariff income gains and coal price reductions. The increase was partially offset by lower e-auction coal prices and reduced coal sales to NTPC.
B. Other Income (Note No. 27)
The Other income of the Company has reduced 730.35 crore during the current year as compared to the previous year, mainly due to:
a. Miscellaneous income decreased by 7307.88 crore mainly due to,
- I hiring the previous year, the Company has received CC() Approved Mine Closure Claim of 7139.53 crore in the previous year whereas it stands 74.39 crore for the current year.
?– Miscellaneous income decreased by 7172.74 crore, primarily because 7125.91 crore of income recognised in FY 2024-25 from liquidated damages (Availability Guarantee and Performance Guarantee) and back charges imposed by TPS II Expansion on BIIEL was not recorded in the current year.
b. The above reduction is partially offset by
- Dividend income from subsidiary and joint venture companies (NTPL and CLUVPL) increased by 739.44 crore and profit on sale of assets rose by 752.19 crore compared to the previous year.
?– Interest income from regulatory orders increased by 7283.02 crore, mainly due to the recognition of 7166.98 crore following an APTET order relating to TPS-II tariff matters and 785.06 crore pursuant to a GERG order on income tax for the linked mines of TPS-I Expansion.
10. Expenses (Note No-28 to 32)
The details of various expenses and movement with previous year are as follows:
| EXPENSES | Note | FY 2025-26 BE (Rs crore) | FY 2024-25 crore) | Change crore) |
| Changes in Inventories | 28 | (73.4) | (205.08) | 131.68 |
| Employee Benefit Expenses | 29 | 2,433.36 | 2.997.20 | (563.84) |
| Finance Costs | 30 | 513.9 | 562.5 | (48.6) |
| Depreciation & Amortisation Expenses | 31 | 1,452.88 | 1,368.10 | 84.78 |
| Other Expenses | 32 | 5,557.96 | 5,081.68 | 476.28 |
| Total Expenses | 9,884.70 | 9.804.40 | 80.3 |
The total expenses have increased mainly due to the following reasons:
Note 28
Stock expenses increased by 7131.68 crore, mainly due to a higher closing stock of lignite and coal compared to the opening stock. However, the stock movement during the current year waslowerthan that of the previous year, resulting in the increase in stock-related expenses.
Note 29
Employee benefit expenses decreased by 7 563.84 mainly due to PRMA provision recognised in the previous year, reduction in provisions for Earned Leave and IJ IS, and lower employee costs arising from retirements, partially offset by new recruitments i average MIP count reduced from 9,911 to 9.207). I However, these reductions were partly offset by higher gratuity provisions due to an increase in the gratuity limit and higher DA rates.
Note 30
Finance costs have decreased by 7 48.60 crore mainly due to the redemption ofNLCIL bonds, restructuring ofPFC loans, and lower benchmark interest rates linked to repo and Treasury Bill rates. Although outstanding borrowings increased during
the year, the additional loans were utilised for the Barsingsar 300 MW Solar Project and SBI ECB for the NNTPS FGD Project, with the related interest being capitalised to project costs rather than charged to finance expenses.
Note 31
The depreciation and amortisation expense has increases by 7 84.78 crore primarily due to additions to plant and machinery, capitalisation of new assets including the Barsingsar 300 MW Solar Project, and higher amortisation of land.
Note 32
The increase in other expenses by 7476.28 crore is primarily due to Levy of new tax - TN Mineral Bearing Tax of7 250 per ton, increase of coal reserve price. Royalty and MIX) charges etc. However, this was partly offset by an reduction in diesel, fuel consumption, spares consumption and other factors.
11. Net Movement in Regulatory Deferral Account Balances Income/(Expenses) - Net (Note-33)
The decrease in Net movement in regulatory income i ncrease of regulatory expenses by 7286.51 crore is mainly due to:
a. During the current year, regulatory liability forNTI with respect to Barsingsar mines to the extent ofRs 65.99 crore has been provided by the year
b. The Company received a review petition order from CERC on May 19, 2024, regarding the 2014-19 tariff period for Neyveli mines, resulting in a payable of Rs635.81 crore (including Rs237.4I crore in interest) and a regulatory liability withdrawal of Rs1,273.30 crore after adjusting the interest amount in FY 2024-25.
c. In FY 2024-25, APTEL issued an order on the profit- sharing and incentives for TPS-II (2009-14), which was remanded to CERC. The revised order, effective March 29,2025, led to an reversal of regulatory for an amount ofRs 778.07 crore.
d. During the previous year, NTI has been passed on to the beneficiaries, accordingly the provision recognised earlier, an amount ofRs 418.81 crore has been reversed in the books of accounts.
e. The above, reduction is partially offset by
- Pending issuance of the Tari If ()rder for the control period 2024-29, the Company continues to bill beneficiaries based on the tariff orders applicable for 2019-24 and has recognised Rsl 19.21 crore as regulatory income towards the ()&M cost differential for thermal power plants.
- As per the CERC Tariff Regulations, 2024-29, security expenses, water charges and capital spares are recoverable separately, subject to prudence check.
Accordingly, Rs137.06 crore has been recognised as regulatory income
Following CERCs order on Lignite Input Price for 2009-14, the Company raised debit notes of Rs694.33 crore on TANGEDCO, including interest of Rs417.63 crore for TPS-I. Although TANGEDCO challenged the interest claim, CERC upheld the Companys entitlement to interest in its order dated 8 November 2024. TANGEDCOs appeal before A PTEL remains pending; however, APTEL directed TANGEDCO to pay 50% of the disputed amount through an interim order dated 12 February 2025. Based on these developments and managements assessment, the Company reversed the regulatory deferral liability of Rs417.63 crore during FY 2025-26.
1 Jased on the final CERC order dated 27 March 2( 126 for the 2009-14 truing-up of TPS-I I. llie Commission allowed actual Specific Fuel Consumption (SFC) for energy charge computation, approved inclusion of the residual value of LEP assets in capital cost, and permitted the corresponding Annual Fixed Charges (AFC). Consequently, the Company reversed the Regulatory Deferral Liability ofRs 128.41 crore during FY 2025-26.
Details of significant changes in Key Financial Ratios:
| Name of Ratio | \u25a0 | FY 2025-26 | FY 2024-25 | Variation (%) |
| Current Ratio | 0.64 | 0.81 | (21.80) | |
| Debt - Equity Ratio | 0.53 | 0.43 | 22.34 | |
| Interest Service Coverage Ratio | 9.74 | S.51 | 14.42 | |
| Inventory Turnover Ratio | 7.29 | S.51 | (14.34) | |
| Debtor Turnover Ratio | 4.97 | 2.86 | 73.78 | |
| Operating Margin | 20.27 | 19.36 | 4.70 | |
| Net Profit Margin | 21.49 | 16.58 | 29.61 | |
| Debt Service Coverage Ratio (DSCR) | 1.62 | 3.32 | (51.15) | |
| Long Term Debt to Working Capital Ratio | (2.71) | 6.89 | (139.40) |
Reasons for variations beyond 25%:
a. Debtor Tu mover Ratio
The increase of Debtors turnover ratio is primary attributable to increase of revenue from operations and reduction in average trade receivables, driven by the collection of amounts previously withheld under regulatory orders and also improved collection efficiency in power sector dues as compared to previous year.
b. Net Profit Margin:
The increase in the Net profit margin mainly on account of increase of profit as compared to previous year.
c. Debt Service Coverage Ratio
The reduction in the debt service coverage ratio mainly on account of increase of repayment loans i.e. NLGIL bonds- series -II 2020, series -I 2021 and other project term loans.
d. Long Term Debt to Working Capital Ratio
The reduction in the Long-Term Debt to Working Capital ratio is mainly due to working capital turning negative as current liabilities increased, driven by the issuance of T-bills and commercial paper.
The Companys net-worth has increased from Rs 17.465.17 crore to Rs 19.276). IS crore during the current financial year. This growth in net-worth is primarily attributed to the profits earned by the Company during the year, as well as the movement in income and expenses, as detailed above.
STATUTORY REPORTS
Human Resource Domain
Human Resources at NLC India Limited continued to play a pivotal role in enabling organizational resilience, fostering employee engagement, and aligning workforce capabilities with the Companys long-term strategic vision. During FY 2025-26, HR initiatives were directed towards strengthening human capital, enhancing welfare measures, and embedding a culture of innovation and sustainability.
Workforce Induction and Promotions A total of 692 employees were inducted into the permanent rolls, including 41 under Fixed Term Employment. In a landmark welfare measure, 397 contract workmen were regularized, reinforcing NLCILs commitment to inclusive growth. Promotions were extended to 582 employees across executive and non-executive cadres, ensuring career progression and motivation. Simultaneously, 1,214 separations were managed with due compliance and dignity.
Policy Innovations Multiple employee-centric policies were introduced, including extension of mobile/tablet reimbursement to non-executives, visual aid reimbursement, and a Family Floater Ci roup Mediclaim Policy covering employees and dependents across projects and liaison offices. Launch of grievance portals : GRAPE for employees and CARE for retirees, strengthened transparency, welfare, and post-retirement Felicitation Scheme.
Employee Engagement and Welfare Engagement initiatives included the renovation ofindustrial canteens with modern facilities, recognition of contract workmen through welfare measures and conduct of structured meetings with the representatives of recognized unions and associations. Large-scale participation in International Yoga Day ( 11,000 students and employees) and campaigns such as Swachhata 1 li Seva and Special Campaign 5.0 reinforced wellness, sustainability, and community responsibility. The Neyveli Book Fair 2025 attracted 1.6 lakh visitors, promoting literacy and cultural enrichment.
Learning and Development NLCIL conducted 388 structured training programs spanning 580 program days across technical,
behavioural, and statutory domains. The onboarding of 148 Graduate Executive Trainees and Diploma Engineer Trainees was marked by global IlMA Level D certification, positioning them for international project management standards. Deputation training programs benditted 1,268 employees, while Mission Karmayogi sensitized 2,356 executives on citizen-centric governance. Digital resilience was strengthened through ISO 27001 training, and institutional memory preservation initiatives archived 25 critical lessons learnt.
Township and Welfare Infrastructure Township administration saw the development of a Para Sports Ground for persons with disabilities, digitization of land records, and renovation of quarters into a Ladies Trainee Hostel. Healthcare initiatives included preventive screenings, modernized facilities, and outreach programs, ensuring holistic welfare for employees and communities.
Innovation and Employee Ideation The My-Idea Portal recorded an all-time high of 792 ideas, with 188 evaluated for feasibility, reflecting a culture of innovation and participative management. Employee submissions under New Year Resolutions 2026 were institutionalized into corporate resolutions, reinforcing inclusivity in organizational visioning.
Compliance and CSR HR ensured smooth conduct of union elections, RTI and CPGRAMS disposal, and sensitization on new labour codes. CSR investments of 248.06 crore impacted healthcare, education, and infrastructure, extending N1 .CILs social footprint.
Conclusion
The HR domain at NLCIL during FY 2025-26 exemplified a balanced approach of policy innovation, employee welfare, capability building, and compliance, positioning human capital as a driver of sustainable growth. NLCILs HR strategy integrated statutory compliance, inclusivity, and innovation, thereby reinforcing its role as a socially responsible and future- ready enterprise.
Risk Management
The Company operates under a robust, Board-sanctioned Integrated Risk Management Policy and Framework. In addition to setting clear criteria for prioritising enterprise risks, it explicitly defines the roles and accountabilities of all key personnel. In line with policy guidelines, a sub-board Internal Risk Review Committee evaluates risk exposures every quarter, while the overarching risk assessment and mitigation protocols are regularly examined by the Risk Management Committee, Audit Committee, and the Board of Directors.
To manage exposure on foreign currency borrowings, NLCIL maintains a dedicated Foreign Exchange Risk Management Policy (FERMP). This framework balances the minimisation of debt servicing costs against exchange rate and interest rate fluctuations, fully aligned with the organisations risk tolerance.
The primary aim of the FERMP is to continuously recognise, measure, and track foreign exchange and interest rate sensitivities. It utilises selective hedging mechanisms to control risks within acceptable boundaries while ensuring strict adherence to governance standards. By placing stability and risk containment above speculative profit, the policy protects NLCILs long-term financial health.
Risk Management Practices in NLCIL
Our Integrated Risk Management Policy approved by the Board aimed at systematically identifying, managing and mitigating risks.
The Risk management policy of the Company states that, "NLCIL, as a leading Navaratna CPSE in Mining and Power generation (Thermal & Renewable), recognises that, managing risk is critical for sustainable development and in the pursuit of Business objectives. NLCIL is thus committed to the effective and efficient management of risk to achieve the Companys vision and mission in line with the risk-reward appetite of its stakeholders".
In NLCIL, the risks are broadly classified as Strategic, Business and Operational under nine functional areas. The risks are mapped on a matrix of severity of impact and likelihood of occurrence and prioritised as Active, Passive & Mitigated Risks. As on June 30, 2026, 7 (Seven) Active risks, 20(Twenty) Passive Risks & 30 (Thirty) mitigated risks are being monitored on a regular basis.
NLCIL has a well-defined organisational structure for carrying out the risk management activities. The risks are being reviewed and monitored on regular intervals at various levels of the Company.
- Review of all Active Risks by the Board of Directors on half yearly basis
- Review of all Active Risks by the Audit Committee on half yearly basis
- Review of all Active Risks by Risk Management Committee (RMC), a Sub-Committee of Board of Directors, on half yearly basis
- Review of Active and Passive Risks by Internal Risk Review Committee (IRRC) comprising of one member nominated from each of the Directorate, on quarterly basis
- Review of all Risks by Corporate Risk cell once in two months
- Identifying, Reporting, Reviewing, Monitoring and evolving Mitigation plans by Unit Level Risk Owners (Unit Heads) supported by Risk Managers
Following are the 7(seven) active risks being monitored regularly at Risk Managers, Internal risk review committee, Risk Management Committee, audit committee levels.
- Land Acquisition and availability delay for NLCILs operations
- Safety in NLCIL s operations
- Monitoring the status of all projects to avoid Cost Over-run & Time Over-run
- Sustained operation of CFBC boiler in TPS II E
- Increasing trend of power surrender
- Forfeiture of agreed tariff due to delay in commissioning of solar projects within control period
- Implications of Bithnok Thermal Power Project & Barsingsar Thermal Power Project Expansion, put on hold.
Internal Control
The Company has well-established Internal Control Systems and Procedures commensurate with its size. The Company has in place an approved and well laid out manuals for Delegation of Powers (DoP), Purchase, Contracts and HR Manuals. The internal audit is conducted by external firms including Chartered and Cost Accountants covering all offices and units and their reports are periodically reviewed by the Audit Committee.
The Audit Committee periodically interacts with Internal and Statutory Auditors to assess the adequacy of Internal Control Systems and also supervises the financial reporting process through review of periodical Financial Statements. Further, the accounts of the Company are subject to C & AG audit in addition to the propriety audit conducted by them.
The effectiveness of compliance of Service Rules and Office Orders are subjected to periodical HR audit carried out with an objective to identify the deficiency/deviations and for initiating appropriate corrective measures. HR audit has been carried out Unit-wise, during the year focusing on evaluating the correctness/accuracy in complying with the rules and procedures on identified areas in HR.
Internal Financial Controls Over Financial Reporting
A Companys internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of Standalone
Financial Statements for external purposes in accordance with generally accepted accounting principles. A Companys internal financial control over financial reporting includes those policies and procedures that:
- Regarding the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company.
- Provide reasonable assurance that transactions are recorded as necessary to permit preparation of Standalone Financial Statements in accordance with generally accepted accounting principles and that receipts and expenditures of the Company are being made only in accordance with authorisations of management and Directors of the Company; and
- Provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the Companys assets that could have a material effect on the Standalone Financial Statements. Statutory Auditors are required to review the adequacy and operating effectiveness of such internal financial control over financial reporting and furnish a separate audit report on such review as required by Companies Act, 2013 along with the audit report on financial statements.
Cautionary Statement
Statement in the Directors Report, describing the Companys strengths, strategies, projections and estimates are forward looking statements and progressive within the meaning of applicable laws and regulations. Actual results may vary from those expressed or implied depending upon economic conditions, Government policies and other incidental factors and hence it is cautioned not to place undue reliance on the forward.
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