India's Power Shift: Where Vedanta Stands in the Thermal Conversation

DELHI, India - Aug. 2, 2025 - PRLog -- India is moving fast toward renewables, but the country's growing energy appetite means thermal power isn't going anywhere just yet. With peak consumption rising and reliability remaining critical, thermal remains a cornerstone of the national energy mix.

While net-zero goals are firmly in sight, the reality is that India can't get there overnight. The government is ramping up investments in thermal power—and Vedanta Power is stepping up with ambitious plans that speak to long-term relevance and growth.

Let's break down the numbers and the narrative.

Market Trends Supporting Thermal Power's Relevance

• PPAs Signal Market Stability: In a major shift, four state discoms have signed 25-year power purchase agreements with private thermal producers—the first such move in a decade. These long-term contracts reduce financial risk and improve viability.
• Demand Growth Outpaces Green Supply: By FY 2031–32, demand is expected to cross 366 GW. While renewables will cover about 70%, their intermittent nature makes thermal energy essential for a consistent supply.
• Government Momentum: Of the 80 GW new capacity announced for 2032, 60 GW is already being built. Remarkably, 19 GW comes from private developers—highlighting industry confidence.

Vedanta Power's Strategic Build-Up

• Transitioning to Independence: With its demerger on track, Vedanta Power ( https://www.vedantalimited.com/eng/businesses-power.php ) is on course to become a standalone, purpose-driven entity focused on scalable growth.
• Capacity Targets: Plans to add 15 GW—primarily through brownfield expansion—underscore speed and cost efficiency.
• Execution Milestones: By FY26, Vedanta will hit 2,200 MW capacity across Chhattisgarh (1,200 MW, formerly Athena) and Meenakshi (1,000 MW).
• Financial Edge: In Q1 FY26, revenue jumped 32% YoY and EBITDA soared 253%—marking a strong outperformance across the group's verticals.