Global Economy
The global economic landscape in CY24 remained resilient, despite variations in the strength of activity across countries and sectors. Global output expanded by 3.3%, reflecting sustained growth amid elevated inflation, high interest rates, and ongoing geopolitical tensions. Growth in advanced economies slowed to 1.8%, impacted by tight financial conditions and subdued external demand. In contrast, emerging markets and developing economies expanded by 4.3%, supported by robust domestic consumption and public investment.
Global inflationary pressures moderated in CY24, with headline inflation declining to 5.8%. This was largely driven by tighter monetary policies across major economies and softening energy prices. However, core inflation remained elevated, particularly in services, and global trade and investment activity continued to be cautious due to heightened uncertainty and policy risks.
Outlook
According to the International Monetary Funds (IMF) World Economic Outlook, July 2025 , global growth is projected to moderate to 3.0% in CY25, before edging up to 3.1% in CY26. The near-term outlook is shaped by policy uncertainty, particularly stemming from proposed reciprocal tariff by the US, alongside positive factors such as easing inflation, real wage recovery, and gradual monetary loosening.
Growth in advanced economies is projected at 1.6% in CY25 and 2.1% in CY26, while emerging markets and developing economies are expected to grow at 4.1% in CY25 and 4.0% in CY26, supported by improved consumption and stable commodity prices. Nevertheless, downside risks persist, including geopolitical tensions, climate-related disruptions, and financial market volatility.
According to the report, global headline inflation is projected to decline to 4.2% in CY25 and further to 3.6% in CY26, indicating a gradual return to price stability.
India Economy
Indias economy exhibited strong resilience in FY 2024-25, navigating global headwinds stemming from geopolitical tensions and trade disruptions. According to provisional estimates released by the National Statistics Office (NSO), Indias GDP grew by 6.5% during the year, driven by domestic demand, services sector expansion, and increased public investment.
To support economic momentum amid easing inflationary pressures, the Reserve Bank of Indias (RBI) Monetary Policy Committee (MPC) in its meeting held in June 2025, reduced the policy repo rate by 50 basis points to 5.50%. This marks the third rate cut since February 2025. The move is aimed at reinforcing growth while aligning with the RBIs medium-term objective of maintaining Consumer Price Index (CPI) inflation at 4%, with a tolerance band of ?2%.
Outlook
Looking ahead to FY 2025-26, growth is expected to remain steady at 6.5%, supported by a revival in urban consumption aided by recent tax cuts—and resilient rural demand, driven by strong agricultural production following another year of normal monsoon. Lower oil prices are expected to support corporate margins and fiscal stability, while improved real wages and declining food inflation may further lift discretionary spending a key metric for the auto industry. The RBI is expected to maintain a disinflationary stance, using calibrated liquidity and rate management to ensure inflation remains within the comfort zone. At the same time, this approach will likely support capacity utilisation and private capital expenditure, contributing to long-term industrial momentum.
However, weaker global demand may continue to weigh on exports, posing a downside risk to the growth trajectory.
The RBI has revised its inflation projection for FY 2025-26 to 3.7%, down from the earlier 4%. Quarterly CPI is expected to trend lower: 2.9% in Q1, 3.4% in Q2, 3.5% in Q3, and 4.4% in Q4, with risks to the inflation path viewed as ‘evenly balanced. The forecast factors in declining commodity prices and higher food output, although weather variability and trade-related uncertainties remain key risks.
Indias Core Sector Growth and Index
The core sectors of the Indian economy coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity collectively account for 40.27% of the total weight in the Index of Industrial Production (IIP), highlighting their substantial impact on overall industrial performance. The core sector growth for FY 2024-25 stood at 4.5% against 7.6% growth recorded in FY 2023-24 according to the Ministry of Commerce and Industry, Government of India .
Core Industry Growth Rates
(y-o-y basis in %)
| Sector | Coal | Crude Oil | Natural Gas | Refinery Products | Fertilisers | Steel | Cement | Electricity | Overall Growth |
| Weight | 10.33 | 8.98 | 6.88 | 28.04 | 2.63 | 17.92 | 5.37 | 19.85 | 100.00 |
| FY23 | 11.8 | 0.6 | 6.1 | 3.6 | 3.7 | 12.5 | 8.9 | 7.1 | 7.6 |
| FY24 | 5.1 | -2.2 | -1.2 | 2.8 | 2.9 | 6.8 | 6.3 | 5.2 | 4.5 |
Global Energy Sector
In CY24, the global energy sector witnessed a robust expansion, with energy demand growing by approximately
2.2%, significantly outpacing the average growth rate of the past decade, according to the Global Energy Review by the
International Energy Agency (IEA) . The surge of demand was led by the power sector as electricity demand surged by
4.3%, well above the 3.3% growth in global GDP. Geographically, more than 80% of global energy demand growth originated from emerging and developing economies.
China remained the largest single contributor, while Indias energy demand growth outpaced that of all advanced economies combined, reflecting its strong economic momentum and expanding industrial base. In contrast, energy demand in advanced economies rebounded modestly by about
1%, recovering from the subdued levels in prior years. The US recorded a 1.7% increase in demand, while the European Union returned to growth after a period of contraction.
In the global energy mix in CY24, Renewable energy continued to dominate the global supply mix. In CY24, the share of renewables nearly 38% of the growth in energy demand, followed by Natural Gas at 28%, Coal at 15%, Oil at 11%, and Nuclear Energy at 8%.
Natural Gas emerged as the fastest-growing fossil fuel, with global demand rising by 2.7% to reach a record level. This was supported by strong growth in China and India, where demand increased by over 7% and 10%, respectively, as well as moderate growth in the United States and recovering industrial demand in Europe.
Coal demand grew by approximately 1%, reaching an all-time high of around 8.8 billion tonnes, primarily driven by increased power generation in China and India, while coal consumption in advanced economies declined by over 5%. Oil demand slowed to a growth rate of 0.8% in 2024, with its share in the global energy mix falling below 30% for the first time ever. While road transport fuel demand declined slightly in China and advanced economies, increases in aviation and petrochemical demand offset these reductions.
Electricity demand growth was particularly pronounced in emerging economies, led by China, which accounted for more than half of the global increase, and Southeast Asia, where demand grew by over 7%. In advanced economies, electricity consumption rose by approximately 230 TWh, driven by sectors such as buildings, which accounted for around 60% of demand growth due to increased cooling needs and digital infrastructure, and industry, which contributed the remaining
40%. Electric vehicle adoption and charging infrastructure expansion also contributed to higher electricity demand. Renewable energy sources continued to expand rapidly. Hydropower generation grew by 4.4%, while solar photovoltaic (PV) capacity contributed approximately 480
TWh and wind energy added around 180 TWh. Nuclear energy also made a notable contribution with an increase of about 100 TWh, supported by the addition of 7 gigawatts (GW) of new capacity and improved operational performance of existing plants.
Key Global Growth Rates and the Share of Energy
Demand Growth by Source, CY24
Outlook
Looking ahead, the outlook for global energy remains centred on rapid electrification and the transition to low-emission energy sources. Electricity demand is projected to grow at an average rate of 4% annually through 2027, with emerging economies, particularly China and India, accounting for the bulk of this increase, according to International Energy
Agencys Electricity 2025 report. Low-emission sources, including renewables and nuclear, are expected to meet 80% to 95% of new electricity demand during this period. The share of coal in the global generation mix is anticipated to decline, while solar PV is poised to become the second-largest source of low-emission electricity by 2027.
Indias Energy Sector
In 2024, India reinforced its position as a key driver of global energy demand, recording the second-largest absolute increase in energy consumption worldwide—an increase that exceeded the combined total of all advanced economies.
This surge in demand was underpinned by robust economic growth, rapid industrial expansion, and rising per capita energy consumption.
According to the Energy Statistics India 2025 report by the Ministry of Statistics and Programme Implementation (MoSPI), total primary energy demand reached approximately 1,800 million tonnes of oil equivalent (MToE) in FY 2024-25, reflecting a 4.5% y-o-y increase. This growth was driven by higher energy usage across key sectors, including industry, transport, residential, and agriculture.
Indias energy mix continues to be dominated by coal, which accounted for 48% of total energy demand, followed by oil (28%), natural gas (8%), renewables (12%), and nuclear energy (4%). The industrial sector remained the largest consumer of energy, responsible for over half of total final energy consumption, with the transport sector ranking second, primarily driven by demand for petroleum products.
Outlook
According to the International Energy Agency (IEA), 85% of the projected increase in global electricity demand over the next three years will come from emerging and developing economies, with India playing a pivotal role. As one of the fastest-growing major economies, India is expected to experience the highest rate of energy demand growth globally, driven by sustained economic expansion and urbanisation.
Indias share of global primary energy consumption is projected to double by 2035, underlining its growing influence in the global energy landscape. Energy demand is expected to continue growing at a compound annual rate of 5%, supported by industrialisation, infrastructure development, and rising living standards. The share of renewable energy in the total energy mix is anticipated to reach 25% by 2030, reflecting Indias commitment to energy transition and sustainability.
Indias Power Sector – Installed Capacity and Generation
As of June 2025, Indias total installed power capacity stood at
~476 GW, marking a significant growth from ~305 GW in 2015 16, according to data from the Ministry of Power, GoI. Of this total, about 240 GW (~50.5%) derives from thermal sources including coal, lignite, gas, and diesel—while non-fossil fuel sources, (renewables plus nuclear and large hydro) account for ~235.7 GW (49%). Specifically, renewable energy capacity reached 226.9 GW, and nuclear capacity stood at 8.8 GW.
Indias power sector is among the most diversified in the world, with generation from conventional sources like coal, oil & gas, hydro, and nuclear, as well as renewable sources such as solar, wind, biomass, and small hydro. With rising electricity demand, India continues to expand its energy capacity to support economic growth and sustainability goals.
Source: Ministry of Power, GoI
Indias power sector has seen robust expansion driven by rising demand, infrastructure development, and strong policy support for both conventional and renewable energy sources.
Electricity generation has increased from 1,168 billion units
(BU) in FY 2015-16 to an estimated 1,824 BU in FY 2024-25.
The generation mix remains heavily skewed towards thermal sources, with coal-based generation contributing ~71% of total output.
Non-fossil sources, including hydro, wind, solar, biomass, small hydro, and nuclear, accounted for the remaining 29%. Within that, non-hydro renewables (solar, wind, biomass, small hydro) contributed a rising share, supported by substantial capacity additions and improved utilisation.
Source: Ministry of Power, GoI
Thermal Plant Load Factor (PLF)
During April 2024-March 2025, Thermal Plant Load Factor (PLF) at 69.45% was lower than the target of 73.43% for the period but higher than the PLF of 68.74% achieved during the corresponding period of the previous year.
| April 2024 - March 2025 | April 2023 - March 2024 | ||
| Sector | Target (%) | Achievement (Provisional) (%) | (Actual) (%) |
| Central | 82.39 | 75.32 | 74.98 |
| State | 70.10 | 63.23 | 64.19 |
| Private | 68.03 | 69.96 | 67.28 |
All India |
73.43 | 69.45 | 68.74 |
| Source: Ministry of Statistics and Programme Implementation | |||
Energy Demand and Supply Outlook
In FY 2024-25, Indias energy requirement stood at 1,695 BU, with availability closely matching at 1,694 BU. Over the next five years, energy demand is projected to grow by 5.5-6.0% annually, driven by factors such as the governments goal of 100% railway electrification by FY 2025-26, and over 1,018 km of metro rail projects, expected to add 120-125 BU of demand by FY 2029-30.
Additionally, rising electric vehicle adoption could contribute 40–50 BU, while increased electrification of industrial processes, expansion of data centres requiring 2–3 GW of power by FY 2026-27, and higher demand from infrastructure and manufacturing sectors will further accelerate energy consumption.
Indias Coal Sector – Production, Supply and Imports
Coal, as primary commercial energy fuel, has been sustaining the countrys energy requirements for decades now and would continue to retain its relevance for the few more decades as well. With around 55% share, coal occupies the major space in Indias energy basket.
Indias coal production has reached 1047.57 MT (Provisional) in FY 2024-25, compared to 997.83 MT in FY 2023-24, marking a 4.99% growth.
The Coal Supply also increased from 973.009 MT in FY 2023-24 to 1,025.248 MT (provisional) in FY 2024-25 with a growth of about 5.37%. Uninterrupted coal supply has been ensured during the year for the Power Sector.
Source: Ministry of Coal, GoI
Coal imports fell 8.4% to 183.42
MT in April-December 2024 from
200.19 MT in the same period of FY 2023-24, saving $5.43 billion ( 42,315.7 crore) in foreign exchange. The Non-Regulated
Sector saw a sharper decline of
12.01%, while imports for blending by thermal power plants dropped
29.8%, despite a 3.53% rise in coal-based power generation.
Source: Ministry of Coal, GoI
Coal Reserves in India
As of April 1, 2024, Indias lignite reserves were estimated at 3,89,421.34 MT. The resources have been found mainly in Odisha, Jharkhand, Chhattisgarh, West Bengal, Madhya Pradesh, Telangana and Maharashtra.
State-wise Coal Resources (in MT)
| State | Measured | Indicated | Inferred | Grand Total |
| Odisha | 53,799.43 | 39,053.01 | 6,351.39 | 99,203.83 |
| Jharkhand | 59,876.88 | 27,135.39 | 4,799.30 | 91,811.57 |
| Chhattisgarh | 40,078.14 | 41,092.78 | 1,495.44 | 82,666.36 |
| West Bengal | 18,752.19 | 11,432.59 | 3,773.29 | 33,958.07 |
| Madhya Pradesh | 15,425.17 | 12,378.97 | 5,010.99 | 32,815.13 |
| Telangana | 11,256.78 | 8,496.57 | 3,452.17 | 23,205.52 |
| Maharashtra | 8,163.11 | 3,371.82 | 1,816.70 | 13,351.63 |
| Bihar | 2,346.36 | 3,014.65 | 36.66 | 5,397.67 |
| Andhra Pradesh | 1,024.65 | 2,368.94 | 778.17 | 4171.76 |
| Uttar Pradesh | 884.04 | 177.76 | 0.00 | 1061.80 |
| Meghalaya | 95.64 | 16.65 | 470.93 | 583.22 |
| Assam | 464.78 | 57.21 | 3.02 | 525.01 |
| Nagaland | 8.76 | 21.83 | 447.72 | 478.31 |
| Sikkim | 0.00 | 58.25 | 42.98 | 101.23 |
| Arunachal Pradesh | 31.23 | 40.11 | 18.89 | 90.23 |
Total |
21,2207.16 | 1,48,716.53 | 28,497.65 | 3,89,421.34 |
Lignite Reserves in India
As of April 1, 2024, Indias lignite reserves were estimated at 47,295.61 million tonnes. The major deposits are located in Tamil Nadu, followed by Rajasthan, Gujarat, and other states like Puducherry, Jammu & Kashmir, Kerala, Odisha, and West Bengal.
State-wise Lignite Resources (in MT)
| State | Measured | Indicated | Inferred | Grand Total |
| Puducherry | 0.00 | 405.61 | 11.00 | 416.61 |
| Tamil Nadu | 5,476.00 | 21,412.16 | 10,635.49 | 37,523.65 |
| Rajasthan | 1,203.85 | 3,108.55 | 2,273.84 | 6,586.24 |
| Gujarat | 1,278.65 | 283.70 | 1,159.70 | 2,722.05 |
| Jammu & Kashmir | 0.00 | 20.25 | 7.30 | 27.55 |
| Kerala | 0.00 | 0.00 | 9.65 | 9.65 |
| West Bengal | 0.00 | 1.13 | 2.80 | 3.93 |
| Odisha | 5.93 | 0.00 | 0.00 | 5.93 |
Total |
7,964.43 | 25,231.40 | 14,099.78 | 47,295.61 |
Transition towards Cleaner Energy in Power Generation
Indias power sector is undergoing a fundamental transformation marked by a decisive shift towards cleaner energy sources. This transition is being driven by sustained policy support, technological advancement, and an unwavering national commitment to sustainability and energy security.
The Ministry of New & Renewable Energy (MNRE) 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 of June 2025, India has already achieved 235.7 GW of capacity from non-fossil fuel sources, including 226.9 GW from renewable energy and 8.8 GW from nuclear energy. This accounts for 49% of the total installed power generation capacity of 476 GW, representing a significant milestone in Indias clean energy transition and its broader climate goals.
Renewable Energy Sector
Indias renewable energy sector has made remarkable progress, both in terms of capacity and generation. Driven by targeted government initiatives, supportive policy frameworks, and an expanding domestic manufacturing ecosystem, renewable energy has emerged as a central pillar of Indias energy strategy. The significant growth in renewable energy capacity to 226.9 GW by June
2025 demonstrates Indias capability and resolve to scale sustainable power infrastructure. This achievement not only reflects progress towards the 500 GW target but also reinforces
Solar Power
Solar energy has been at the forefront of Indias clean energy expansion.
Solar power capacity increased more than 39 times over the past decade, from 2.82 GW in FY 2014-15 to 110.9 GW by FY 2024-25. This includes a record capacity addition of 23.83 GW in FY 2024–25 alone, underscoring the rapid acceleration in deployment. Solar energy now constitutes the largest share of Indias renewable capacity, supported by a robust domestic ecosystem and growing rooftop solar adoption. This exponential growth has been enabled
Indias leadership in global energy transition efforts. Renewable energy is now a key contributor to Indias energy mix, helping diversify sources of power generation and enhance energy security.
Renewable energy generation has grown substantially over the last decade, rising from 190.96 billion units (BU) in 2014 15 to 370.65 BU during April 2024 to February 2025. As a result, the share of renewable energy in total electricity generation has increased from 17.20% to approximately 22.20% over the same period, underscoring the critical role of renewables in meeting Indias growing power demand while reducing carbon emissions.
by policies promoting solar parks, grid integration, and distributed generation, . as well as the governments emphasis on Make in India to boost domestic manufacturing of solar modules and equipment.
9
Manufacturing Boost
(2014 to March 2025):
• Solar PV module capacit y surged from 2.3 GW to 88 GW, a 38-fold increase
• Solar PV cell capacity grew from
1.2 GW to 25 GW, a 21-fold increase
Wind Energy
India has also witnessed steady progress in wind energy development.
The installed wind power capacity has more than doubled over the past decade, rising from approximately
21 GW in FY 2014-15 to 51.3 GW by the FY 2024-25. In FY 2024-25 alone, 4.15 GW of new wind capacity was commissioned.
Electricity generation from wind energy reached 78.21 BU between April 2024 and February 2025, accounting for
4.69% of Indias total electricity generation. Domestic manufacturing capabilities in the wind sector have also been significantly strengthened, with 31 certified wind turbine models now produced by 14 Indian companies.
Indias wind energy sector has an annual manufacturing capacity of 18 GW, positioning it well to support continued expansion in both onshore and offshore wind development.
Short-term Power Market in India
The short-term power market, including the Deviation Settlement Mechanism (DSM), plays a critical role in meeting the dynamic electricity needs of Indias power ecosystem. It facilitates flexibility for consumers and suppliers, enhances market efficiency, and helps balance real-time supply-demand fluctuations.
In FY 2023–24, Indias short-term power market accounted for 12.5% of total electricity generation, while the remaining 87.5% was procured through long-term contracts and intra-state transactions, according to a report by the Central
Electricity Regulatory Commission. This underscores the strategic role of short-term trading in providing liquidity and responsiveness to the power sector.
Growth Trends and Market Dynamics
Between FY 2009–10 and 2023–24, the volume of short-term transactions (including DSM) grew at a compound annual growth rate (CAGR) of 8.9%, significantly outpacing the 6.0% CAGR of gross electricity generation during the same period.
In FY 2023–24, the total volume of short-term transactions and DSM stood at 218.22 billion units (BU), a growth of 12% from 194.35 BU in FY 2022 23.
Excluding DSM and direct bilateral transactions, the volume transacted via traders and power exchanges was 162.51 BU in FY 2023 24. This segments monetary value was 100,729 crore, reflecting a 19% y-o-y growth.
Key Market Highlights:
• Power Exchanges: Transactions via exchanges grew at a CAGR of 22.4% from FY 2009 10 to
2023–24, highlighting the increasing preference for transparent and competitive trading platforms
• Trading Licensees: Electricity traded through licensed traders grew modestly at a CAGR of 3.1% over the same period
• DSM Volume: DSM recorded a marginal increase of 1.86% in FY 2023 24 over the previous year.
However, its share in total short-term volume has significantly declined from 39.2% in FY 2009-10 to 12.3% in FY 2023-24, indicating improved scheduling discipline and grid stability
• Direct Bilateral Transactions: These fell by
7.6% in FY 2023-24 compared to FY 2022-23.
Nevertheless, their share in total short-term and
DSM volume has risen from 9.4% in FY 2009-10 to 13.3% in FY 2023-24, indicating a steady role for customised agreements between large entities
Cross-Border Electricity Trade
India is a net exporter of electricity to Nepal, Bangladesh, and Myanmar, and a net importer of electricity from Bhutan.
Cross-Border Trade of Electricity between India and Its Neighbouring Countries (MU), FY13 to FY23
| Year | Bhutan (+) | Nepal (-) | Bangladesh (-) | Myanmar (-) | Net Export/Import by India |
| FY13 | 5,555.18 | 840.37 | 1,448.19 | 0.00 | 3,266.62 |
| FY14 | 5,109.48 | 997.17 | 3,271.89 | 0.00 | 840.42 |
| FY15 | 5,555.07 | 1,469.59 | 3,654.4 | 0.00 | 431.08 |
| FY16 | 5,863.58 | 2,021.21 | 4,419.61 | 3.23 | -580.47 |
| FY17 | 5,611.14 | 2,388.96 | 4,808.83 | 5.07 | -1,591.72 |
| FY18 | 4,657.07 | 2,798.84 | 5,690.31 | 6.67 | -3,838.75 |
| FY19 | 6,310.73 | 2,373.06 | 6,987.94 | 8.61 | -3,058.88 |
| FY20 | 9,318.17 | 1,865.05 | 7,551.99 | 9.24 | -108.11 |
| FY21 | 7,670.34 | 1,921.09 | 7,301.74 | 8.8 | -1,561.29 |
| FY22 | 6,379.95 | 158.05 | 8,622.14 | 9.8 | -2,410.04 |
| FY23 | 3,862.78 | 154.08 | 8,413.52 | 8.47 | -4,713.29 |
Source: Grid-India, (+) Imports (-) Exports
Renewable Energy Certificates (RECs)
In FY 2023 24, a total of 138.53 lakh Renewable Energy Certificates (RECs) were transacted both through power exchanges and bilaterally via trading licensees—marking a significant 68% increase over the 82.50 lakh RECs traded in FY 2022 23.
Following the implementation of the CERC REC Regulations, 2022, the traditional categorisation of RECs into solar and non-solar has been replaced with a unified REC contract. This shift introduced the concept of certificate multipliers, designed to promote less mature and higher-cost renewable technologies, thereby enhancing the market value and viability of diverse renewable energy sources.
In Terms of Market Performance:
• The market clearing volume of RECs traded on power exchanges surged from 26.32 lakh (December 2022 to March 2023) to 116.58 lakh in FY 2023 24
• The weighted average market clearing price of these RECs declined from 1,000/MWh in FY 2022-23 to 442/MWh in FY 2023-24
• Additionally, REC trading through licensed traders rose sharply from 0.90 lakh RECs in FY 2022-23 to 21.95 lakh
RECs in FY 2023-24, with the average price decreasing from 925/MWh to 452/MWh
Growth of Renewable Energy Certificates Transacted on Power Exchanges and Bilaterally through Traders, FY11 to FY23
Year |
Number of Buyers | Number of Sellers | Number of RECs Transacted (lakh) |
| FY11 | 397 | 197 | 10.15 |
| FY12 | 802 | 683 | 25.90 |
| FY13 | 1,083 | 1,044 | 27.49 |
| FY14 | 821 | 1,378 | 30.62 |
| FY15 | 1,332 | 1,512 | 49.55 |
| FY16 | 1,760 | 1,588 | 64.88 |
| FY17 | 1,140 | 1,088 | 162.00 |
| FY18 | 988 | 830 | 126.00 |
| FY19 | 830 | 820 | 89.28 |
| FY20* | 277 | 523 | 9.21 |
| FY21* | 541 | 749 | 84.60 |
| FY22 | 520 | 820 | 82.50 |
| FY23 | 493 | 723 | 138.53 |
*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 2022 Regulations on
Renewable Energy Certificates (RECs):
• Validity of RECs: As per the new regulations, the certificates issued shall remain valid until they are redeemed •
• Eliminated Floor and Forbearance Price: Floor and
Forbearance price are not required for trading of RECs.
Prices would be discovered in the power exchanges and as mutually agreed between eligible entities and electricity traders. The Commission may by an order give such directions to the Power Exchange(s) or the electricity traders or the Nodal Agency as may be considered necessary, on being satisfied that any of the following circumstances exist or are likely to occur -
Abnormal increase or decrease in prices of Certificates;
Sudden volatility in the prices of Certificates;
Sudden high or low transaction volumes of Certificates on a Power Exchange
• REC Fungibility: There is a new concept of fungibility for
Renewable Energy Certificates, where the categorisation of RECs, i.e., solar and non-solar has been eliminated in the REC Regulations, 2022. The regulations have provision for all types of renewable energy technologies, like solar, wind, hydro, biomass and biofuel, conversion of waste into energy and any other RE technology into a new REC contract through which RECs of all RE technologies are traded.
• Certificate Multiplier: A new concept of Certificate Multiplier has been introduced for promoting less mature and high-price RE technologies. The multiplier will increase the market value of different RE technologies.
The certificate multiplier assigned to RE technologies depends upon the date of commissioning of the project. Multipliers are assigned as per the tariff range (in /kWh) for different RE technologies.
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 | 6-8 | 2 |
| Waste and Non- | ||
| Fossil Fuel based | ||
| Cogeneration | ||
| Biomass and | 8-10 | 2.5 |
| Biofuel | ||
Multipliers will be assigned for the next three years from the date of effect of new regulations. The tariff range and Certificate Multiplier will be revised by CERC as per the maturity level of RE technology. The Certificate
Multiplier, once assigned to RE generating stations and
Captive generating stations, shall be valid for fifteen years from the date of commissioning of these RE and captive generating stations. The RE projects which have already been commissioned before the new REC regulations came into action shall not be subjected to these conditions.
• Transactions of RECs through Trading Licensees:
With a view to increase competition in the Renewable Energy Market and reducing the transaction costs of RECs, the Commission approved the transactions of RECs through the trading licensees. It will give long-term visibility to all the buyers of RECs, as they can fulfil their RPOs easily. This will facilitate even the small buyers who face difficulty in trading REC to fulfil their RPO.
Critical Minerals
Critical minerals play a vital role in the development of clean energy technologies, including solar panels, wind turbines, electric vehicles (EVs), and energy storage systems.
Usage of Critical Minerals
Critical minerals are crucial not only for economic development but also for national security. The concentration of these resources in limited geographic regions poses supply chain risks and potential strategic vulnerabilities.
Recognising their importance, a committee formed by the
Ministry of Mines in November 2022 identified 30 critical minerals, with 24 included in Part D of Schedule I of Mines and Minerals (Development and Regulation) Act, 1957
(MMDR Act, 1957). The inclusion of 24 critical minerals in Part D of the First Schedule of the Mines and Minerals (Development and Regulation) Act (MMDR Act) means that the Central Government now has the exclusive authority to auction mining leases and composite licenses for these specific minerals.
The 30 Critical Minerals
| 01 Antimony | 02 Gallium | 03 Lithium | 04 Phosphorus | 05 Strontium |
| 06 Tungsten | 07 Beryllium | 08 Germanium | 09 Molybdenum | 10 Potash |
| 11 Tantalum | 12 Vanadium | 13 Bismuth | 14 Graphite | 15 Niobium |
| 16 REE# | 17 Tellurium | 18 Zirconium | 19 Cobalt | 20 Hafnium |
| 21 Nickel | 22 Rhenium | 23 Tin | 24 Selenium | 25 Copper |
| 26 Indium | 27 PGE* | 28 Silicon | 29 Titanium | 30 Cadmium |
National Critical Mineral Mission (NCMM)
To secure these resources, the Government of India launched the National Critical Mineral Mission (NCMM) in 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 FY 2024-25 to FY 2030-31.
Objectives of NCMM
India aims to reduce the emissions intensity of its GDP by
45% by 2030 (from 2005 levels), achieve 50% of its electric power capacity from non-fossil sources by 2030, and reach
Net Zero emissions by 2070. To achieve these climate goals, the National Critical Mineral Mission (NCMM) plays a vital role by building a resilient and self-reliant ecosystem for critical minerals. The mission focuses on boosting domestic production, encouraging private sector participation, strengthening international partnerships, and streamlining regulations to ensure a steady supply of minerals essential for clean energy technologies.
Battery Storage
Indias Battery Energy Storage Systems (BESS) market is poised for transformative growth, driven by the nations target of achieving 500 GW of renewable energy capacity by 2030 and the critical need for grid stability. According to the National Electricity Plan (NEP) 2023 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 is expected to rise significantly to 411.4 GWh by FY 2031-32, including 175.18 GWh from PSP and 236.22 GWh from BESS. Furthermore, the CEA has projected that by 2047, energy storage requirements will grow to 2,380 GWh, with 540 GWh from PSP and 1,840 GWh from BESS, driven by the substantial addition of renewable energy capacity to meet
Indias Net Zero emissions target by 2070.
Green Hydrogen
India is currently the worlds third-largest producer and consumer of hydrogen, following China and the United
States, with an annual production of approximately 6.5
Million Metric Tonnes Per Annum (MMTPA), primarily used in crude oil refineries and fertiliser manufacturing, according to the World Economic Forum.
However, the vast majority of this hydrogen is grey hydrogen, produced from natural gas via steam methane reforming. With hydrogen demand in India expected to increase by 2.5 to 3.5 times by 2040, the key challenge lies in transitioning this growing demand towards green hydrogen, which is produced using renewable energy and emits no carbon dioxide.
Recognising this potential and the need for decarbonisation, the Government of India launched the National Green
Hydrogen Mission (NGHM). This mission aims to position
India as a global hub for green hydrogen production and exports, while enhancing energy self-reliance, reducing greenhouse gas emissions, and generating significant employment in clean technology sectors.
National Green Hydrogen Mission
Launched in January 2023, the National Green
Hydrogen Mission has a financial outlay of 19,744 crore until 2029 30. The mission targets the development of a robust green hydrogen ecosystem, supporting domestic demand, exports, and technological innovation.
• Indias green hydrogen production capacity is targeted to reach 5 MMTPA by 2030, reducing dependence on fossil fuel imports
• With export market growth, production could scale up to 10 MMTPA
• Achievement of the mission targets is expected to reduce cumulative fossil fuel imports worth 1 lakh crore by 2030
• The mission is projected to attract over 8 lakh crore in total investments and generate more than 6 lakh green jobs across the country
• It aims to add over 100 GW of renewable power generation capacity, leading to an estimated reduction of 50 million metric tonnes (MMT) of
CO emissions per annum through the production and use of green hydrogen
Energy Access and Efficiency in India
India achieved 100% electrification of villages by March 2022, based on 2011 Census figures. This milestone is a crucial part of Sustainable Development Goal (SDG) 7, which aims to ensure access to affordable, reliable, sustainable, and modern energy for all. This accomplishment demonstrates Indias commitment to ensuring that all its citizens have access to modern energy services, helping drive overall development and well-being.
Energy Intensity and Per Capita Energy Consumption:
Energy intensity is defined as the amount of energy consumed to generate one unit of GDP at constant prices. It is a crucial metric for evaluating the energy efficiency of a countrys economy. Per Capita Energy Consumption (PEC) is computed by dividing total energy consumption for the year by the mid-year population of that year. While both of these indicators are typically based on conventional energy consumption, it is important to note that they may not fully account for the consumption of non-conventional energy sources, especially in rural areas.
The energy intensity in India decreased from 0.2703 Mega Joules per rupee in FY 2014-15 to 0.2180 Mega Joules per rupee in FY 2023-24 (P). This decline indicates an improvement in the efficiency of energy use relative to the economic output, showcasing that Indias economy is becoming more energy-efficient over time.
Energy Intensity in India (Megajoules Per Rupee)
Per Capita Electricity Consumption
Indias per capita primary energy consumption increased from 22,434 Megajoules/person in FY 2014-15 to 27,574 Megajoules/person in FY 2023-24 (P), indicating a growing demand for energy.
Per Capita Primary Energy Consumption in India (Megajoules/Person)
Future Outlook
Outcomes of COP29: Advancing Global Climate
Action
At the COP29 UN Climate Conference in Baku, Azerbaijan, from November 11 to November 22, 2024, nearly 200 countries agreed to triple annual climate finance to $300 billion by 2035 for developing nations. This landmark pledge aims to support adaptation, mitigation, and resilience efforts amid growing climate risks. The conference also introduced the ‘Baku-to-Belem Roadmap, which calls for mobilising $1.3 trillion annually by 2035 from public and private sources to address the funding gap. While this was hailed as a significant step, several developing nations, including India, criticised the outcome as insufficient and lacking equitable representation during negotiations.
Additionally, COP29 operationalised the Loss and Damage Fund, enabling financial support for climate-vulnerable countries starting in 2025. Progress was also made on carbon market mechanisms under Article 6 of the Paris Agreement, enhancing transparency and global cooperation in emissions trading. Looking ahead to COP30 in Brazil, the focus will be on converting pledges into action, scaling climate finance flows, and ensuring fair and timely support to developing economies in the global energy transition.
Company Overview
NLC India Limited (NLCIL), a Navratna public sector enterprise established in 1956, is a leader in lignite mining and power generation with operations across India. Over the years, it has pioneered advancements in brown coal mining and diversified into coal mining and renewable energy, while exploring global opportunities. Sustainability and environmental stewardship have been core objectives since inception, with extensive CSR and community development initiatives ensuring shared growth. NLCIL firmly believes the community is integral to its existence, not separate from it.
Mining
Lignite Mining
NLCIL operates 3 opencast Lignite Mines of total installed capacity 28 Million Tonnes Per Annum (MTPA) at Neyveli and 1 opencast Lignite Mine at Barsingsar in Rajasthan with an installed capacity of 2.10 MTPA.
Coal Mining
• NLCIL has entered coal mine projects and has been allotted Talabira-II & III OCP of 20 MTPA capacity in Odisha and Pachwara South Coal Block of 9 MTPA capacity in Jharkhand State
• Further, NLCIL won the North Dhadu (Western Part) of 3 MTPA Capacity Coal Block in Jharkhand, Machhakata (Revised) Coal Block of peak rated capacity of 30 MTPA and New Patrapara South Coal Block of 12 MTPA in Angul District of Odisha State in Commercial Coal Block auctioning
• Coal production in Talabira-II & III OCP (20 MTPA) was commenced on April 26, 2020 and the Mine attained COD on April 1, 2021 and started to supply coal to its end use Plant, NTPL TPS, Thoothukudi and now supplies coal to NTPC Thermal Power Stations under a MoU, for a period of 5 years
• Project activities are in full swing at the recently acquired commercial coal blocks, with statutory clearances under progress and anticipated commencement of these mines shall be 2030
Critical Minerals
NLCIL was declared as preferred bidder for "Semhardih Phosphorite and Limestone Block" and "Raipura Phosphorite and Limestone Block of Balod, Chhattisgarh" in the Tranche–V auction of Critical and Strategic Mineral Blocks by Ministry of Mines.
Power Generation
Thermal Power
• NLCIL is operating 4 Lignite based pit-head Thermal Power Stations with an aggregate capacity of 3,390 Megawatt (MW) at Neyveli and one 250 MW Lignite based Thermal Power Station (BTPS) at Barsingsar, Rajasthan
• 1,000 MW Coal based Thermal Power Station is also in operation at Thoothukudi, Tamil Nadu through its subsidiary company, NLC Tamil Nadu Power Limited (NTPL), a Joint Venture between NLCIL and TNPGCL (equity participation in the ratio of 89:11)
• Further, NLCIL formed JV with the Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL) in setting up 3x660 MW Coal based Thermal Power Station at Ghatampur in UP and achieved Unit#1 COD on December 12, 2024.
Honble Prime Minister has dedicated this Unit to the Nation on May 30, 2025
Renewable Energy
• The Company is operating 1,380 MW of Solar Power Plants in various Districts of Tamil Nadu and Andaman & Nicobar Islands
• 51 MW Wind Power Plant in Tirunelveli district of Tamil Nadu
• 52.83 MW of 300 MW Solar project is commissioned on 20.08.2025 at Rajasthan
• NLCIL is the first CPSE to cross 1 GW capacity in Solar
Power Generation in the country
• The Company has become a member of International Solar Alliance (ISA)
• NLCIL Renewables Ltd. (NIRL), a wholly owned Subsidiary of NLCIL, has received LoA from Tamil Nadu Green
Energy Corporation Ltd. (TNGECL) for establishing 250
MW/ 500 MWh capacity BESS project
• Received LoA from SJVN Ltd. for development of 200 MW
Wind Power Project
• Received LoA from NTPC Limited for setting up of 450 MW ISTS Connected Wind-Solar Hybrid Power Project
• NLCIL is aiming to achieve a total Renewable energy capacity of 10,110 MW by 2030
• 2.11GW of RE projects are under implementation in advanced stages
Current Capacities
| Mining Capacity | Power Generation (6,731 MW) |
(50.10 MTPA) |
(Including JVs) |
| Lignite: 30.1 MTPA | Lignite Based: 3,640 MW |
| Coal: 20.00 MTPA | Coal Based: 1,660 MW |
| Solar: 1,432 MW | |
| Wind: 51 MW |
Planned Capacity Addition during 2025-30
| Mining Capacity (54.25 MTPA) | Power Generation (13,399 MW) (including JVs) |
| Lignite: 11.25 MTPA | Lignite Based: 1,000 MW |
| Coal: 42.00 MTPA | Coal Based: 3,720 MW |
| Critical Minerals: 1 MTPA | Solar: 8,279 MW |
| Wind: 400 MW |
• NLCILs Total Capacity by 2030 in Mining will be
104.35 MW and in Power Generation will be 20,130 MW
• Projected Capital Expenditure (up to 2030): 1.17 lakh crore (approx.) with a debt-equity ratio of 70:30 for Thermal & Mining projects and 80:20 for Renewable projects NLCIL has contributed significantly to the Socio-Economic development of the Nation for more than six decades.
NLCILs strategy is to have minimum impact on environment and fulfil the aspirations of various stakeholders. Thrust areas include environment improvement programme such as eco restoration in mines, massive afforestation programmes, rainwater harvesting, waste utilisation, and conservation of biodiversity, effective water and energy management, pollution control, mitigating the impact of climate change. NLCIL is proactive in training its employees in Environment Management.
The Company also pursues appropriate standards in safety, quality, energy efficiency, clean mining techniques, emission controls and environment management.
Further, NLCIL also meets the statutory requirement as stipulated by the Department of Public Enterprises (DPE) over its Guidelines on Sustainable Development for Central
Public Sector Enterprises (CPSE).
Business Performance
In FY 2024-25, NLC India Limited achieved record-breaking performance with over 41 Million Tonnes of coal and lignite production. Despite operational challenges at Neyveli Mines, the Company generated 27.9 Billion Units of electricity, including 2.1 BU from green energy. With the all time highest capital expenditure of 7,736.10 crore NLCIL reinforced its focus on infrastructure growth and energy expansion.
Portfolio-wise Major Achievements
Mining
• Achieved an all-time highest-ever Coal and Lignite production of 41 MT. Talabira-II & III OCP mines achieved record Coal production of 17.2 MT and Coal despatch of 16.7 MT
• For the first time in the history of Barsingsar Lignite Mine, the annual rated EC Mine Capacity of 2.1 MT has been achieved in two consecutive years (FY 2023-24 and FY 2024-25)
• Implemented the Digital Logistics Management System at Talabira-II & III OCP mines, ensuring real-time monitoring and transparency in coal dispatch
• Obtained Forest Clearance (Stage-I) and (Stage II) and Environmental Clearance for Pachwara South OCP
• Secured Machhakata (Revised) Coal block (30 MTPA) and executed the Coal Mine Development & Production
Agreement (CMDPA) with the Nominated Authority, MoC.
Also, vesting order issued by MoC
• Secured New Patrapara (South) Coal Mine Project (12 MTPA) and executed the Coal Mine Development and Production
Agreement (CMDPA) with the Nominated Authority, MoC.
Also, vesting order issued by MoC
• Signed MoU with M/s.DVC for supply of 2.0 MTPA of coal from Talabira-II&III OCP mines
• Signed MoU with M/s. NTPC for the continued supply of coal from Talabira-II&III OCP mines for next 5 years
Thermal
• Successfully declared the Commercial Operation Date for Unit-1 (660 MW) of Ghatampur Thermal Power Project, with this NLCIL joined the elite club of super critical thermal operations
• TPS-I Expansion ranked first in cumulative PLF among lignite fired thermal power stations (up to February2025).
• First time, since inception, Barsingsar Thermal Power Station
(BTPS) achieved a record 81.90% PAF, surpassing CERC norms of 75%
• BTPS recorded its highest ever power generation of 1.76 BU, since inception
• Issued Notice to Proceed (NTP) to BHEL (EPC Contractor) for the 3x800 MW NLC Talabira Thermal Power Project, marking its official start
• Sale order issued for the dismantling of the 600 MW decommissioned TPS-I, generating 600.09 crore. Successfully conducted biomass pellet co-firing trials at BTPS under the SAMARTH mission.
• Ministry of Power accorded permission to adopt Sub Critical Technology (2 x 500 MW) for TPS-II Second Expansion project at Neyveli
• NLCIL Rajasthan Power Limited (NRPL), a JV between
NLCIL and RVUNL has been formed for 3X125 MW lignite based thermal power plant and linked mines
In FY 2024-25, NLC India Limited (NLCIL) achieved significant operational milestones across its power portfolio.
BTPS recorded its highest-ever annual gross generation of
1,759.64 MU, with a strong PLF of 80.35%, and ranked first nationally among all central sector thermal stations in October
2024 with a PLF of 96.49%. TPS I Expansion secured the top position among lignite-based stations multiple times during the year, while NNTPS ranked first in April 2024 and second in October 2024. NUPPL GTPP achieved commercial operation of Unit 1 on December 12, 2024 and crossed 1 BU of generation by March 2025.
On the investment front, NLCIL delivered robust capex, surpassing targets. Consolidated thermal-linked capex stood at 4,090.26 crore, forming the major portion of the total 7,736.10 crore capital spend, reflecting accelerated execution of projects.
These achievements demonstrate NLCILs 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
• Successfully entered into 10 years of renewable energy (RE) generation, producing 1,234 crore units of green energy
• Generated 2.1 BU of green energy, preventing 1.785 million emissions
tonnes of CO2
• Received LoA for a 200 MW Wind Power project from
SJVN Ltd.
• NIRL, wholly owned subsidiary of NLCIL, received LOA from Tamil Nadu Green Energy Corporation Ltd (TNGECL) for establishing 250 MW / 500MWh capacity BESS project in Tamil Nadu and PPA agreement has also been signed with Tamil Nadu Power Distribution Corporation Limited
• Won 450 MW Hybrid RE project from NTPC
• Floated tender for establishing 4 MW PEM Electrolyser
Green Hydrogen plant, first of its kind in NLCIL
• NIRL Rajasthan Renewables Limited (NRRL), a JV between NIRL and RVUNL has been formed for developing 2,000 MW of renewable power projects in Rajasthan
• MoU signed with the Govt. of Odisha for establishment of
Mines (42 MTPA), Thermal power projects (2,400 MW) and renewable energy projects (2,000 MW)
• Contract Awarded for EV charging stations (5 nos.) at various location of NLCILs & JVs which is under implementation stages.
• Contract Awarded for establishing Roof top solar (4 MW) & Floating Solar (1 MW) in various buildings of NLCILs & its JV
• NIRL Assam Renewables Limited (NARL) a JV between NIRL and APDCL has been formed to develop 1,000 MW of green energy projects
• NIRL signed JV agreement with MAHAPREIT for development of various Renewable Projects
• NIRL signed MoU with Govt. of Assam for setting up renewable power projects including solar, pumped storage and battery energy storage system projects
• Signed Power Usage Agreement (PUA) with Telangana DISCOMS for 200 MW
Financial and Strategic Growth
• Achieved an all-time high share price ( 311+) and market capitalisation ( 43,000+ crore)
• Ministry of Finance exempted capital gains tax on renewable asset transfers to NIRL
) • Secured $100 million term loan (YEN) from SBI for project expansion
• Received NIL comments certificate from C&AG for the FY 2024-25 standalone & consolidated financial statements
• Achieved 107.74% collection efficiency, collecting 9,274 crore against 8,609 crore billed
• Reduced power dues by 39.21% from 4,632 crore to 2,816 crore
• Formed ESG Committee and conducted its first meeting to drive sustainability initiatives
• NLCIL have declared & paid interim dividend of 15% and NTPL has declared & paid interim dividend of 10%
• Truing up Tariff petitions for Tariff period 2019-24 and Tariff petitions for Tariff period 2024-29 has been filed with CERC before the due date for all the Thermal units and Mines units including subsidiaries
• Reduced Finance Cost of more than 150 crore through refinancing of existing loans including subsidiaries, NTPL and NUPPL by exploring the market
• Systemic improvements including restructuring and centralisation of Finance Team, payments related to employees, vendors, contractors, TREDS, etc.
Projects Won by NLCIL through Competitive Bidding
Mining
• NLCIL won the Machhakata (revised) Coal mine at Angul •
District, Odisha of 30 MTPA capacity on July 4, 2024. Vesting Order issued by MoC on September 5, 2024. For Land Acquisition, MoC issued notification under section 4(1) of CBA (A&D) Act, 1957 on June 6, 2025.
• Further, on November 21, 2024, NLCIL won the New Patrapara
South Coal mine at Angul District, Odisha of 12 MTPA. Vesting
Order was issued to NLCIL by MoC on February 4, 2025
• NLCIL was declared as preferred bidder for "Semhardih Phosphorite and Limestone Block" and "Raipura Phosphorite and Limestone Block of Balod, Chhattisgarh" in the Tranche–V auction of Critical and Strategic Mineral Blocks held on May 15, and May 16, 2025 by Ministry of Mines
Renewables
• On February 28, 2025 NLCIL received LoA from SJVN Ltd. for development of 200 MW Wind Power Project ( 3.74/kWh)
• On June 22, 2025, NLCIL Renewables Ltd. (NIRL), a wholly owned subsidiary of NLCIL, won a 250 MW / 500 MWh Battery Energy Storage System (BESS) project through a tariff-based competitive bidding process under the Viability Gap Funding (VGF) scheme. The LoA was received from Tamil Nadu Green Energy Corporation Ltd. (TNGECL).
• NLCIL received a Letter of Award (LoA) from NTPC Limited on June 27, 2025 for setting up of 450 MW ISTS (Inter State Transmission System) Connected Wind-Solar Hybrid Power Project and Supply of Hybrid Power generated from the aforesaid project to NTPC Limited for a period of 25 Years under PPA
Eco-friendly Measures Taken by NLCIL
• As part of the Green Initiatives and maximising the ‘Waste to Wealth Concept, NLCIL commissioned one OB to Sand project at Mine-IA & other one is under construction in Mine-I
• To utilise the mine voids, NLCIL planned 2x50 MW
Pumped Storage Hydro-Power Projects. Feasibility Report is under review. Further, NLCIL has planned to develop
4x275 MW Pumped Storage project at Palar-Porathalar,
Tamil Nadu & 500 MW at Salandi, Odisha. These projects are at initial stage
• To utilise the Mined-out area in Mine-II, NLCIL is establishing 50 MW Solar power project in Mined out area for which construction works are under progress. The project is scheduled for commissioning by November 2025
• Green Hydrogen: NLCIL planned for setting-up of a Pilot scale Project to generate Hydrogen with in-put of 4 MW
Solar to the Electroliser. Further activities are under progress
• In order to comply with the new emission norms, installation of auxiliaries such as Flue Gas Desulphurisation (FGD) is also being undertaken. FGD construction is under progress in NNTPS, NTPL & NUPPL
Capex FY 2024-25
| Budget | Actual | % Actuals w.r.t. | |
Particulars |
2024-25 | 2024-25 | Budget 2024-25 |
NLCIL - |
1,240.00 | 3,864.54 | 311.66% |
STANDALONE |
|||
NLCIL - |
3,040.00 | 7,736.10 | 254.48% |
CONSOLIDATED |
Way forward
• Commencement of mining in Pachwara South OCP
• Commissioning of Unit-II & unit -III of NUPPL
• 950 MW Solar (at 300 MW-Rajasthan & 600-Gujarat, 50 MW-TN mined out area), 50 MW wind at Gujarat (Total 1050 MW) – Commissioning expected in this FY 2025-26
• Construction works are expected to commence in the following projects:
4 MW – Rooftop solar – Tamil Nadu
1 MW – Floating solar – Tamil Nadu
100 MW + 200 MW solar – Gujarat
810 MW RRVUNL solar project Rajasthan.
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 FY 2024-25 placed elsewhere in this report.
The items of the Balance Sheet are as discussed below:
Property, Plant & Equipment (PPE), RoU Asset, Intangible Asset, Capital Work-in-Progress and Assets under Development (Note-2 to Note-6):
| As at March 31st | |||
| Particulars | 2025 ( crore) | 2024 ( crore) | % Change |
| Gross Block of | 28,601.21 | 27,712.81 | 3.21 |
| PPE (Note-2) | |||
| Net Block of | 17,376.73 | 17,830.85 | (2.55) |
| PPE (Note-2) | |||
| Net Block - RoU | 76.52 | 76.47 | 0.07 |
| Asset (Note-3) | |||
| Net Block of | 211.23 | 225.95 | (6.51) |
| Intangible Assets | |||
| (Note-4) | |||
| Capital Work- | 4,319.55 | 1,923.37 | 124.58 |
| in-Progress | |||
| (Note-5) | |||
During the year, the gross block of PPE increased by 888.40 crore, whereas the net block decreased by 454.12 crore. The increase in gross block is mainly due to capitalisation of mining assets, turbine generator in NNTPS, conveyor system in Mine-II and acquisition of land in Neyveli & Talabira, whereas the decrease in net block is mainly attributable to depreciation on the assets.
The increase in gross block in Right-of-Use (ROU) Assets is mainly on account of the addition of new leases, which is partly offset by the periodic depreciation of ROU assets. The decrease in net block of Intangible Assets by 14.72 crore is mainly attributable to periodic depreciation on the assets, and the same was partially offset by the new capitalisation of assets of 5.09 crore.
The significant increase in CWIP during the year is mainly due to the FGD project of NNTPS, capital expenditure incurred towards Solar 300MW–Barsingsar project, Macchakata Coal Mine, New Patrapara South Coal Mine, Solar 50MW–Mine II (Captive), Wind 50 MW Hybrid and land acquisition for
Talabira Mines & Thermal.
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 of March 31 2025 | st ( crore) 2024 |
| Investment in Subsidiaries | 5,086.24 | 4,634.84 |
| Investment in Joint Venture | 0.01 | 0.01 |
| Investment in Associates | 5.27 | 5.27 |
The change in Investments in subsidiaries is on account of:
• Additional subscription to equity shares 10 Per Share of 331.75 crore (PY: 393.70 crore) of NUPPL, through a right issue. However, the percentage of holding remains unchanged
• Additional investment of 119.65 crore in NLC India
Renewable Limited (NIRL), a wholly owned subsidiary of NLCIL, during the current year b. Non-Current Trade Receivables (Note-7b)
As per the Late payment surcharge rules notified by
Ministry of Power on June 3, 2022, one DISCOM has opted for 734.56 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 31st March of the current year and the previous year are as follows:
| As of March 31st | ( crore) | |
Particulars |
FY25 | FY24 |
| Unsecured – Considered | 58.03 | 222.50 |
| Good |
c. Non-Current Loans (Note-7c)
The secured loans and unsecured loans to employees include house building loans, vehicle loans, multipurpose loans, etc. The loans outstanding as at 31st March of the current year and the previous year are as follows:
| As of March 31st | ( crore) | |
Particulars |
FY25 | FY24 |
| Loans to employees | 7.85 | 14.28 |
d. Other Non-Current Financial Assets (Note-7d)
As per the guidelines from the 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. 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 as per the Guidelines. During the year, 139.53 crore was released based on the coal controller order received in FY 2024-25 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. The fresh deposits made during FY 2025-26 amount to 57.37 crore.
| As of March 31st | ( crore) | |
Particulars |
FY25 | FY24 |
| Mine Closure Deposit | 604.31 | 639.41 |
e. Other Non-Current Assets (Note-8)
| As of March 31st | ( crore) | |
Particulars |
FY25 | FY24 |
| 1,658.40 | 1,159.30 | |
| Capital Advances | 123.50 | 123.50 |
| Advances Other than | ||
| Capital Advances |
The increase in capital advance is mainly due to capital advances given for acquisition of land for Talabira project & Neyveli Mines, Solar Power Plant 200 MW – Gujarat,
Wind 50 MW - Hybrid and FGD project of NNTPS.
Current Assets (Note-9 to Note-12):
The current assets as at March 31, 2025 and March 31, 2024 and the changes therein are as follows:
| As of March 31st ( crore) | |||
| Particulars | FY25 | FY24 | % Change |
| Inventories (Note 9) | 1,370.04 | 1,047.64 | 30.77 |
| Trade Receivables (Note 10a) | 1,883.79 | 3,311.55 | (43.11) |
| Cash and Cash | 163.47 | 553.81 | (70.48) |
| Equivalents (Note 10b) | |||
| Bank balances other than cash and cash equivalent (Note 10c) | 125.72 | 125.66 | 0.05 |
| Loans (Note 10d) | 714.40 | 170.90 | 318.02 |
| Other Financial Assets | 604.30 | 1,220.22 | (50.48) |
| (Note 10e) | |||
| Current Tax Assets (Net) | 134.20 | 274.28 | (51.07) |
| (Note 11) | |||
| Other Current Assets | 1,256.92 | 737.62 | 70.40 |
| (Note 12) | |||
a. Inventories (Note-9)
The increase in the inventory is mainly on account of the increase in the closing stock of Lignite & Coal during the current year compared with the previous year, which is mainly due to increase in production.
b. Trade Receivables (Note-10a)
Trade receivable have mainly reduced due to timely payments by DISCOMs inline with the LPS Rules, 2022 and the consequent realisation of old dues through the instalment scheme, which has been offset by the billing of the impact on account of CERC orders. c. Cash and Cash Equivalents (Note-10b)
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. d. Bank balances other than cash and cash equivalent (Note-10c)
There were no material changes during the year. e. Loans (Note-10d)
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 555 crore, 98.55 crore & 41.94 crore respectively, as on March 31, 2025.
The loan balances to employees mainly represent secured loans of various nature such as House Building Loan, Car/ Scooter Loan, and unsecured loans such as Multipurpose
Loans, etc., during the year. f. Other Current Assets (Note-12)
The increase in other current assets is mainly on account of an increase in advances given to other parties by
431.58 crore, and further, the increase in GST receivable (Input Tax Credit) by 159.29 crore.
Assets Held for Sale (Note-13):
All units of Thermal Power Station-I have been retired from operation subsequent to September 30, 2020. The net block of TPS-I assets as on March 31, 2024 is reclassified as assets held for sale as per the requirements of Ind AS 105. The estimated net sale proceeds of the retired assets are expected to be above the residual value of assets appearing in the books. The first tranche of assets was sold in FY 2024-25, and the Company booked a profit on sale of assets amounting to 44.71 crore.
Regulatory Deferral Account Debit Balances (Note-14):
Expense/Income recognised in the Statement of Profit & Loss, to the extent recoverable from or payable to 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 in regulatory deferral balances from the year in which the same becomes recoverable from or payable to the beneficiaries.
Regulatory deferral account debit balance consists of various incomes which accrue to the Company from its DISCOMs due to various actions of the Regulator.
During the current financial year, the regulatory account balance has decreased by 350.98 crore as compared to the previous financial year, mainly due to-
(a) Based on the petition filed with CERC for NNTPS
(2x500 MW), the differential amount (as against provisional tariff order) of 360.27 crore was considered under regulatory deferral account debit balance.
Consequent to receipt of the CERC order, regulatory assets created earlier have been reversed in the current year.
(b) The Company undertakes concurrent Mine Closure activity. In line with the Mine Closure Guidelines issued in May 2020 by the Ministry of Coal, GoI, the actual expenses incurred on mine closure up to a maximum of
50% of the Mine Closure Deposit, along with interest in the Escrow Account, can be withdrawn on verification every five years. Accordingly, for the 5-year period from 2016-17 to 2020-21, an amount of 171.15 crore had been considered on a provisional basis under regulatory assets over the previous periods.
In the current financial year, 171.15 crore has been reversed based on an order from the Coal Controller (CCO) received in FY 2024-25 for the period 2016-17 to
2020-21. Further, an amount of 23.92 crore (PY: 22.78 crore) has been considered as regulatory income / assets based on the revised mine plan.
(c) 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 of 88.80 crore in respect of those charges for the year ended March 31, 2025 is accounted for in regulatory deferral account debit balances. (d) 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 68.30 crore arising between the 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.
Total Equity (Note-15 & Note-16):
The total Equity of the Company at the end of FY 2024-25 increased to 17,465.17 crore from 15,993.91 crore in the previous year, an increase of 9.20%. The major reasons for the same are tabulated below:
| Total Equity | Book Value Per | |
| Particulars | ( crore) | Share ( ) |
| Opening balance as on April 1, 2024 | 15,993.91 | 115.34 |
| Add: Profit for the year | 1,887.26 | 13.61 |
| Less: Appropriations of Dividend | (416.00) | (3.00) |
| Balance as on March 31, 2025 | 17,465.17 | 125.95 |
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 March 31, 2025.
Non-Current and Current Liabilities:
| Details of Schedules | March 31, 2025 | March 31, 2024 | Difference |
| Long-term borrowings including current maturities of long-term borrowings (Note-17a & 21a) | 7,524.97 | 7,968.77 | (443.80) |
| Lease Liabilities (Note-17b & 21b) | 36.38 | 35.85 | 0.53 |
| Other Non-Current Financial Liabilities (Note-17c) | 245.89 | 456.07 | (210.18) |
| Provisions (Non-Current) (Note-18) | 152.54 | 151.30 | 1.24 |
| Deferred Tax Liabilities (Net) (Note-19) | 3,867.49 | 3,465.24 | 402.25 |
| Other Non-Current Liabilities (Note-20) | 767.33 | 723.61 | 43.72 |
| Current Borrowings Excluding Current Maturities of Long-term Loan (Note-21a) | -- | -- | -- |
| Current Trade Payable (Note-21c) | 1,233.62 | 770.16 | 463.46 |
| Other Current Financial Liabilities (Note-21d) | 657.49 | 465.71 | 191.78 |
| Other Current Liabilities (Note-22) | 2,057.71 | 1,706.55 | 351.16 |
| Provisions (Current) (Note-23) | 1,209.93 | 498.48 | 711.45 |
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 | March 31, 2025 | March 31, 2024 |
| Borrowings in non- current financial liabilities (Note-17a) | 5,006.74 | 7,055.28 |
| Current maturities of non-current borrowings included in current liabilities (Note-21a) | 2,518.23 | 913.49 |
Total borrowings |
7,524.97 | 7,968.77 |
The reduction in total borrowings is mainly due to the repayment of term loans and project-specific loans.
b. Lease Liabilities (Note-17b & 21b)
To meet its requirements, w.r.t maintaining offices / guest houses at various locations, its requirement of vehicles for official purposes and use of power evacuation facilities for its solar stations, the Company has entered into several lease agreements with various parties. The lease liability represents the present value of future lease payments as on March 31, 2025. The increase in the lease liability is due to new lease agreements, which were duly offset by lease payments during FY 2024-25.
c. Other Non-Current Financial Liabilities (Note-17c)
The other non-current financial liabilities represent liabilities towards capital expenditures. The liability has decreased by 210.18 crore in FY 2024-25, mainly on account of certain project liabilities becoming due as per contractual obligations. Hence, the same are classified under other current financial liabilities.
d. Provisions (Note-18)
The non-current portion of the Retirement Travel Allowance provision has been classified under this head. The movement is on account of giving effect to the actuarial valuation obtained.
e. Deferred Tax Liabilities (Net) (Note-19):
Deferred Tax Liabilities (Net) have increased from
3,465.24 crore as of March 31, 2024 to 3,867.49 crore as of March 31, 2025. The net increase in deferred tax liability during the year, amounting to 402.25 crore, is mainly on account of utilisation of MAT credit during the current financial year.
f. Other Non-Current Liabilities (Note-20)
Non-current liabilities have increased by 43.72 crore in the current financial year, mainly due to an increase in deferred income by 86.75 crore, which was partly offset by a reduction in mine closure liability by 43.03 crore.
g. Current Borrowings excluding current maturities of long-term loan (Note-21a)
There are NIL current borrowings by the company during the year.
h. Current Trade Payable (Note-21c)
The Trade Payables have increased by 463.46 crore during the current financial year.
i. Other Current Financial Liabilities (Note-21d)
Other financial liabilities represent financial liabilities such as unclaimed dividends and accrued interest of long-term as well as short-term liabilities. The variance is mainly due to the classification of capital liabilities and other contractual obligations, which have become due for payment in the next 12 months.
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 have increased by 351.16 crore in the current financial year, mainly due to an increase in advances & deposits.
k. Provisions (Note-23)
The current portion of Provisions has increased mainly due to an increase in provisions created towards PRMA, earned leave, gratuity, and differential mining charges
& HPC wages in respect of Talabira Mines (which are under dispute).
Regulatory Deferral Account Credit Balances
(Note-24):
The amount under regulatory deferral liabilities as on March 31, 2025 relates to the impact arises out of various regulatory orders for the previous tariff periods: (a) The company has filed appeals before APTEL against
CERC orders on the rejection of actual secondary fuel consumption (SFC) for Thermal Power Station II (Neyveli) (2009-14), disallowance of de-capitalisation of LEP assets, and the reduction in claims for capital expenses. NLCIL also appealed to a TNERC order on the reduction of levelised tariffs for 500 MW solar plants. These impacts have been appropriately accounted for in the Regulatory
Deferral Account under Ind AS 114 in previous years.
(b) NLCIL filed a review petition against CERCs Lignite
Transfer Price Truing-up order (2014-19), challenging the disallowance of additional capital expenditure and
O&M expenses. Following a May 2024 CERC order allowing actual O&M expenses, a regulatory liability of 1,273.31 crore (net of interest) was reversed.
(c) NLCIL also challenged a reduction in the levelised tariff for a 130 MW plant before APTEL, but the case was dismissed, leading to a reversal of 30.24 crore in regulatory provisions.
(d) In the revision of pooled lignite prices and profit-sharing,
APTELs July 3, 2024, order required NLCIL to share profits from lignite sales, and disallowed incentive sharing. Following a CERC order on March 29, 2025, the previously created regulatory deferral liability of 778.07 crore was reversed.
(e) The regulatory liability of 418.81 crore, related to the sharing of non-tariff income from coal/lignite sales during the 2019-24 tariff period, was reversed after being passed on to DISCOMs via credit notes.
(f) In FY 2022-23, NLCIL billed 386.51 crore to DISCOMs for income tax recoverable under CERC tariff regulations, under the ‘Vivad Se Vishwas Scheme (VSVS). 68.39 crore has been received, while the balance remains disputed. A legal matter with TANGEDCO is pending, with the Madras High Court directing CERC adjudication. NLCIL retains a regulatory deferral liability of 386.51 crore (plus 16.52 crore interest), totalling 403.03 crore, as of March 31, 2025.
(g) In March 2024, CERC issued an order for Lignite Input
Price for 2009-14, leading to debit notes of 694.33 crore (including 417.63 crore interest) to TANGEDCO. While TANGEDCO filed a writ petition, CERC upheld the interest claim in November 2024, but TANGEDCO has appealed. NLCIL has provided 417.63 crore under regulatory deferral liability pending resolution.
(h) Additionally, NLCIL recognised a regulatory deferral liability of 30.79 crore for excess billing based on the last available Input Price Tariff Order (2019-24) compared to the 2024-29 tariff petition.
Total Income (Note-25 & Note-26)
| Particulars | FY 2024-25 | FY 2023-24 | Change |
A Revenue |
|||
| 1 Sale of Power | 7,323.59 | 7,836.55 | (512.96) |
| 2 Sale of Lignite | 605.40 | 648.68 | (43.28) |
| 3 Sale of Coal | 2,246.39 | 1,980.49 | 265.90 |
| 4 Sale of by-products | 88.94 | 83.96 | 4.98 |
| 5 Consultancy & other services | 40.72 | 35.60 | 5.12 |
| 6 Less: Transfer to CWIP & Rebate | 19.26 | 65.03 | (45.77) |
Revenue from Operations |
10,285.78 | 10,520.25 | (234.47) |
B Other Income |
|||
| 1 Interest on Deposits, Loans to Subsidiaries, Loan to Employees and Others | 194.06 | 473.26 | (279.20) |
| 2 Provisions Written Back | 259.12 | 38.25 | 220.87 |
| 3 Dividend from Subsidiary | 194.74 | 107.10 | 87.64 |
| 4 Others (Net Off Transfer to CWIP & Mine Closure Liability) | 553.46 | 254.49 | 298.97 |
Total Income |
1,201.38 | 873.10 | 328.28 |
The major reasons for variations in Revenue from Operations from the previous year are briefly explained below:
A. Revenue from Operations (Note-25):
(a) The revenue from sales of Power has reduced by 6.55% mainly due to
• During the current year, there has been a decline in the total power generation by 223.45 million units (MU) when compared to the corresponding period of the previous year.
• During the previous year, the Company has received several regulatory/tariff orders such as the CERC review petition order received for Neyveli Mines w.r.t control period 2014-19; Non-tariff Income gain sharing on
Barsingsar Lignite e-auction sales to DISCOMs; CERC revised Lignite Transfer Price trued up order for Neyveli mines for the period 2009-14; and CERC Trued up order for the tariff period 2014-19 for the Barsingsar thermal plant, resulting to increase in power sales in previous year.
• The decrease in above power sales is partly offset by net increase in power sales on accounts of receipt of
CERC Tariff Order for the control period 2019-24 w.r.t
NNTPS and CERC Tariff Order for the period 2019-24 with respect to Barsingsar Mines & Thermal.
(b) Revenue from Sales of Lignite has reduced due to reduction in rate of e-auction sales of Barsingsar Mines and Nil open sales in Mine IA during FY 2024-25. The same is partially offset by increase in TAQA sales.
(c) Revenue from Coal sales has increased mainly on account of increase in e-auction coal sales and also increase in sales volume to NTPL & NTPC, during the current year as compared to previous year. Further, same is partially offset by reduction of coal e-auction price.
B. Other Income (Note No. 26)
The Other income of the Company has increased by 37.60% during the current year as compared to the previous year, mainly due to:
(a) Reversal of ECL provision on account of debtors realisation and towards VSVS.
(b) The Company has received CCO approved Mine Closure Claim amounting during the year as compared to corresponding period of previous year.
(c) Increase in Dividend income from NTPL (Subsidiary) during the current year.
(d) The above reduction is partially offset by:
• Reduction in Interest income on CERC orders mainly due to interest income booked on receipt of revised LTP order for the control period 2009-14 for Neyveli
Mines pertaining to TPS-I in previous year. The same is partially offset by reversal of surcharge income on account of concessional surcharge rate from 18% p.a. to 12% p.a.
• Interest income on Debtors has been reduced mainly due to interest charged on TAQA based on High Court order for 2016-17 and 2017-18.
• Receipts from Insurance Claims have decreased as compared to corresponding previous year, majorly due to receipt of claim w.r.t TPS II in FY 2023-24.
C. Expenses (Note No-27 to 31)
The details of various expenses and movement with previous year are as follows:
| FY 2024-25 | FY 2023-24 | |||
| EXPENSES | Note | ( crore) | ( Crore) | % Change |
| Changes in Inventories | 27 | (205.08) | (189.34) | 8.31 |
| Employee Benefit Expenses | 28 | 2,997.20 | 2,646.46 | 13.25 |
| Finance Costs | 29 | 562.50 | 642.89 | (12.50) |
| Depreciation & Amortisation Expenses | 30 | 1,368.10 | 1,441.76 | (5.11) |
| Other Expenses | 31 | 5,081.68 | 5,016.79 | 1.29 |
Total Expenses |
9,804.40 | 9,558.56 | 2.57 |
The total expenses have increased mainly due to the following reasons:
Note 27
The increase in the closing stock of lignite and coal, compared to the opening stock, has resulted in a reduced movement of inventory during the current financial year.
Note 28
The increase in employee benefit expenses is primarily due to higher provisions for PRMA, gratuity, PRP, earned leave, and
Dearness Allowance (DA). The average DA for employees in FY 2024-25 is 46.60%, compared to 41.10% in FY 2023-24. This increase was partially offset by a reduction in provisions for UIS, as well as a decrease in leave encashment and manpower costs.
The average MIP in FY 2024-25 is 9,910, compared to 10,043 in FY 2023-24, largely due to employee retirements, although this was partly balanced by the induction of new employees.
Note 29
Finance costs have decreased primarily due to improved fund availability, driven by collections from debtors through bill discounting. Additionally, the repayment of long-term loans associated with commissioned projects has contributed to the reduction in finance costs for the Company.
Note 30
The depreciation and amortisation expense has decreased primarily due to a change in the depreciation rate after 12 years, as per CERC regulations for the Barsingsar thermal plant, and reduced land amortisation due to an increase in land reserves. This decrease was partially offset by higher depreciation on plant and machinery and insurance spares, resulting from capitalisation across units.
Note 31
The reduction in other expenses is primarily due to a decrease in interest payable on the CERC order, provisions for doubtful debts, repairs & maintenance, etc. However, this was partly offset by an increase in fuel consumption, royalty, overburden removal expenditure, spares consumption and other factors.
1. Net Movement in Regulatory Deferral Account Balances Income / (Expenses) - Net (Note-32)
The increase in Net movement in regulatory income by 221.97 crore is mainly due to:
(a) 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
635.81 crore (including 237.41 crore in interest) and a regulatory liability withdrawal of 1,273.30 crore after adjusting the interest amount.
(b) In July 2024, 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 impact of 718.96 crore (net of interest) on regulatory income.
(c) There is a reduction in Regulatory liability / expenses of
414.91 crore due to 440.76 crore in credit notes issued to DISCOMs, including 266.74 crore for Barsingsar, 92.24 crore for Talabira, and 81.78 crore for Neyveli mines. Further, the Company booked 68.30 Crore for differential O&M for the 2024-29 tariff period.
(d) The increase was partially offset by several factors:
• A reversal of 1,328.98 crore in regulatory liability due to the APTEL order on Neyveli Mines Lignite Transfer Price (2009-14)
• A pending TANGEDCO appeal regarding interest on
Lignite Input Price (2009-14) with a liability of 417.63 crore in Q1 FY24
• The recognition of a receivable of 264.15 crore for
NNTPS (2019-24) and a corresponding regulatory asset withdrawal of 360.27 crore
• A reversal of 171.15 crore regulatory income related to the mine closure period (2016-17 to 2020-21) in Q2 FY24
Details of Significant Changes in Key Financial Ratios:
| Particular | FY25 | FY24 | Variation (%) |
| Current Ratio | 0.81 | 1.71 | (52.33) |
| Debt-Equity Ratio | 0.43 | 0.50 | (13.52) |
| Interest Service Coverage | 8.51 | 7.58 | 12.32 |
| Ratio | |||
| Inventory Turnover Ratio | 8.51 | 11.18 | (23.91) |
| Debtor Turnover Ratio | 3.76 | 2.73 | 37.53 |
| Operating Margin | 19.36 | 22.29 | (13.15) |
| Net Profit Margin | 16.58 | 16.09 | 3.00 |
2. Reasons for Variations beyond 25%:
(a) Current Ratio
The variation in the current ratio is primarily attributable to a decrease in current assets coupled with an increase in current liabilities as compared to the previous financial year. The main contributing factor to the rise in current liabilities is the reclassification of long-term borrowings under ‘Current Maturities of Long-Term Borrowings.
(b) Debtor Turnover Ratio:
The increase in the debtor turnover ratio is mainly due to a 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.
The Companys net-worth has increased from 15,993.91 crore to 17,465.17 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 explained above.
Human Resource
Human capital refers to the collective skills, knowledge, experience, and capabilities of the Companys. Effective HR policies and initiatives often directly enhance human capital by:
• Attracting skilled professionals aligned with organisational goals
• Developing employees competencies and leadership potential.
• Retaining high performers through engagement and fair practices
• Maximising Productivity by aligning people strategy with business strategy
• Fostering Innovation through diversity and continuous learning
At NLCIL Human Resources (HR) policies serve as the framework that governs the management of employees from recruitment to separation procedures. They ensure fairness, consistency, and compliance with labour laws, while also shaping organisational culture. These policies typically cover areas such as recruitment and selection, performance management, learning and development, employee welfare, workplace conduct, and grievance redressal.
In light of the above, NLCIL has implemented several key initiatives & policies during 2024-25 which are aimed at enhancing employee welfare and organisational effectiveness.
The HR policies are drafted for a culture that empowers human capital development.
Recruitment: Time to hire is reduced by leveraging IT.
Partners in Progress (PIP) meeting was organised on the eve of New Year 2025 with Recognised Trade Unions, Associations, Welfare
Federations and WIPS.
As a safety measure, wearing of helmets and safety belts is made compulsory for employees while commuting to and from
Office/ Units.
Coordinated for the 4th Phase of Regularisation of contract workmen based on Common Seniority List wherein around 578 persons have been regularised into the rolls of NLCIL during FY 2024-25.
Memorandum of Understanding (MoU) was signed to modify the career growth for the workers regularised from the common seniority list.
Policies and Rules
During the year, NLCIL introduced several progressive HR policies to enhance employee welfare and efficiency. A Standard Operating
Procedure was formulated for claiming outstanding amounts of deceased employees who had availed HBA and conveyance advances. The Application for Compassionate Transfer (ACT) was launched under the Job Rotation and Transfer Policy for executives and supervisors. Conveyance advances were extended to support electric and hybrid vehicles, promoting e-mobility. Key
HR applications, including Festival Advance, EL Encashment, and Multipurpose Loan, were integrated with the Employee and
Manager Self-Service (ESS/MSS) portal for streamlined access.
Additionally, a Group Mediclaim Health Insurance Policy was rolled out for employees in JVs, projects, and regional offices outside Neyveli.
Organisation Design and Development:
NLCIL continued to strengthen its people-first approach by introducing policies aimed at building future-ready leadership and organisational excellence. A structured policy for Succession Planning and Leadership Development was formulated to ensure a robust talent pipeline. Exit interviews were initiated for executives in grades E1 to E6 to analyse attrition trends and identify corrective measures. Feedback and suggestions were actively sought from superannuating senior executives in grades E7 to E9, leveraging their experience to drive improvement. The ‘MY IDEA initiative encouraged employees to share innovative suggestions, with accepted ideas beingrewarded and implemented. Additionally, a focused study and adoption of industry best practices further enhanced operational and cultural excellence.
Benefits Coordination Cell
• Implemented improvised Post-Retirement Medical Insurance for retired employees for NLCIL w.e.f. September 1, 2024
Increased Room/ICU Charges
Increased Health Check Up Charges
Enhancement of Ambulance / Transportation Charges Increase of Corporate Buffer
There is No Pre-Post limit for Cancer Treatment
- Diet Charges for Patients increased
• Free Health Camps were arranged for PRMA members at different locations
• The Online Retirees Grievances Redressal Portal (RGRS) was opened throughout the year and all the complaints / clarifications / queries (Totally 70 Nos) has been addressed
• PRMA Orientation classes to PRMA members
The Strategic HR initiatives are planned efforts by NLCIL HR professionals to address specific organisational needs.
Common initiatives include Human Resource Planning, Career Development, Change Management, Diversity, Equity & Inclusion (DEI), Employee Wellness, Leadership Development, Succession Planning, and Leadership.
Key HR Initiatives
. • Talent Acquisition & Workforce Planning – Ensuring the right talent is hired and aligned with business needs.
• Employee Engagement & Retention – Building programmes that foster motivation, recognition, and career growth.
• Learning & Development – Continuous upskilling through training, leadership development, and digital learning platforms.
• Performance Management – Transparent appraisal systems linking performance to rewards and career progression.
• Diversity, Equity & Inclusion (DEI) – Promoting inclusive practices that leverage workforce diversity.
• Health & Well-being – Initiatives around physical, mental, and financial wellness.
• HR Digital Transformation – Adoption of HR analytics and self-service platforms.
The impact of HR initiatives is clear from key performance indicators (KPIs), such as employee engagement, retention rates, training completion, and performance outcomes.
HR, as a function, routinely maps talent to business strategy, aligning people policies with organisational goals to optimise human capital and drive NLCIL success.
In summary, HR policies and initiatives are not standalone—they are strategic levers to strengthen human capital, thereby • ensuring sustainable growth, competitiveness, and long-term success. •
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•
Risk Management
A comprehensive Integrated Risk Management Policy and •
Framework as approved by the Board is in place. Besides risk prioritisation, the roles and responsibilities of the members are clearly defined. As per the policy, an Internal Risk Review • Committee (below Board level) review the risks on a quarterly basis. The risk assessment together with the minimisation • procedure is periodically reviewed by the Risk Management
Committee, Audit Committee and the Board.
NLCIL has framed a comprehensive Foreign Exchange Risk Management Policy (FERMP) to prudently manage the risk involved in its foreign currency borrowings. The policy seeks • to strike a balance between optimising the cost of borrowings • and mitigating currency risk and interest rate risks in line with the companys risk appetite. • The key objectives of the policy are to identify, measure, and • monitor forex and interest rate. Exposures on a periodic basis, • adopt selective hedging strategies to reduce risks to acceptable • levels, and ensure that decisions conform to risk management framework. The focus of the policy is on risk mitigation and stability rather than profit maximisation, thereby safeguarding the companys long-term financial sustainability.
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 31, 2025, Seven (7) Active risks, Twenty (20)
Passive Risks & Thirty (30) 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 10 active risks being monitored as of now.
• 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.
Page 54 for more
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 of Chartered Accountants covering all offices / 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. In order to strengthen internal financial control, external expert has been appointed to prepare a comprehensive document for the key control areas along with responsibility matrix.
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.
| For and on Behalf of the Board of Directors | |
Place: Neyveli |
Prasanna Kumar Motupalli |
Date: 4th September, 2025 |
Chairman and Managing Director |
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