 "NTPC")
The power sector may present interesting medium-term to long-term investment opportunities. Economic recovery is linked to higher power usage, which should mean 10-12 per cent higher consumption this fiscal year (2021-22, or FY22).
Supply-chain issues, high coal and gas prices affected thermal margins. However, with coal prices declining and coal inventory picking up, the situation has eased somewhat. Given the low base of last fiscal year, there is a favourable base-effect.
The government’s initiative to bundle renewables with thermal power could benefit generators, such as NTPC. The expansion of the solar manufacturing production-linked scheme to Rs 24,000 crore may lead to fresh
