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EPC Companies Ramp Up Focus on Thermal Power Opportunities

Engineering, procurement, and construction (EPC) firms are increasingly turning their attention toward thermal power projects, as coal-based generation continues to play a central role in India’s energy mix. With nearly three-fourths of the country’s electricity still sourced from thermal power, the segment is expected to meet rising demand, especially as gas and hydro supplies show signs of decline, analysts noted.

Major players like Larsen & Toubro (L&T) are planning to expand their footprint in this space, targeting the addition of around 4–5 GW of thermal capacity over the next two years. This aligns with a broader industry opportunity estimated at 10–15 GW. Overall, India’s thermal power capacity is projected to grow from 247 GW in FY25 to nearly 309 GW by FY32, implying the need for approximately 80 GW of new coal-based capacity and investments worth nearly $91 billion.

Industry experts attribute this renewed push toward thermal projects to rising baseload demand, concerns around energy security, and the need to replace ageing infrastructure. According to Subramanian Sarma, Deputy Managing Director and President at L&T, these factors are consistently being emphasized by policymakers and key stakeholders, reinforcing the importance of capitalizing on emerging opportunities in the sector.

As demand for reliable power continues to grow, EPC companies are positioning themselves to play a key role in supporting the expansion and modernization of India’s thermal power capacity.