India is poised to add nearly 12 gigawatts of new thermal power capacity in the current financial year, marking a significant jump from last year’s modest addition of 4,530 megawatts. According to people familiar with the developments, the higher addition aligns with the Ministry of Power’s targets and signals renewed momentum in the conventional power segment after years of underperformance.
Thermal capacity targets have frequently been missed by wide margins over the past few fiscal years. In FY25, the actual addition was about 70 percent lower than the planned capacity. This trend was similar in FY24, when the country added 5,404 MW, around 63 percent short of the target, and in FY23, when only 1,460 MW was added, falling behind by nearly 77 percent.
So far in the ongoing fiscal year, around 5.8 GW of new thermal capacity has already been commissioned. An additional 2 GW is expected to come online shortly, which will take the total addition to around 7 GW in just the first nine to ten months. With multiple large projects nearing completion, officials expect the full-year total to reach close to 12 GW.
India’s long-term plan envisions adding 97 GW of thermal power capacity by FY35 to meet rising electricity demand driven by industrial growth, urbanisation, and increasing household consumption. The country’s existing thermal base currently stands at 244.8 GW.
Data from the Central Electricity Authority (CEA) shows that India added 32 GW of total power capacity between April and September of the current fiscal. Of this, 4.3 GW came from thermal projects, while renewable energy accounted for the bulk of the additions. In comparison, the same period last year saw only 60 MW of thermal capacity being added.
Despite the push for renewables, coal-based power continues to play a critical role in grid stability and round-the-clock supply. The expected surge in thermal commissioning this year reflects efforts to bridge demand-supply gaps and prepare the power system for rapidly rising peak loads.
