Stable policy, revenue visibility, regulated margins triggers for NTPC

The receivables situation may become significant, given the prior history of the power sector

As the political uncertainty settles down, investors are reviewing their assumptions about the power sector. Demand here is likely to continue to grow strongly in the long-term at around 5-6 per cent CAGR (compounded annual growth rate) during the next 6-7 years.

Given policy continuity, several trends will persist.

One is large investments in renewable power where there is a target of 500GW by FY30, which will entail annual capacity growth of 45GW with roughly $200 billion of investments aggregated.

Another $150-175 billion will be needed to beef up transmission distribution and storage systems. Thermal will also continue to grow