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Rammam-III HEPP Cost More Than Doubles to Rs 2,865 Cr; NTPC Targets 2029 Completion

120 MW Project in West Bengal’s Darjeeling Sees Nearly 10-Year Delay, Revised Completion by 2029
Indian Masterminds Stories

New Delhi: NTPC Limited’s Board of Directors has approved a significant revision in the estimated cost of its Rammam-III Hydroelectric Power Project (HEPP), raising it to Rs 2,865.56 crore, more than twice the original estimate of Rs 1,381.84 crore approved in 2014.

The 120 MW run-of-the-river hydroelectric project, situated on the Rammam River in Darjeeling district, West Bengal, was initially expected to be commissioned by September 2019. However, the Ministry of Statistics and Programme Implementation (MoSPI) now lists the project’s revised expected completion date as March 2029, reflecting a delay of almost a decade.

Project Details: Infrastructure and Capacity

Rammam-III HEPP consists of three generating units, each with a capacity of 40 MW. The infrastructure includes a barrage and diversion structure, an 8.2-kilometer headrace tunnel, a surge shaft, a vertical penstock approximately 1,520 meters long, and a 740-meter tailrace tunnel.

Once operational, this project will contribute to NTPC’s growing portfolio of renewable energy sources. The company aims to expand its non-fossil fuel capacity to 60 GW by 2032, a crucial target amid the country’s energy transition goals.

NTPC’s Push for Renewables and Strategic Moves

The Rammam-III HEPP expansion is a part of NTPC’s broader strategy to enhance its renewable energy capacity, aligning with national and global trends toward clean energy. Despite cost escalations and timeline shifts, the project remains an important asset for the company’s long-term sustainability.

NTPC Approves Transfer of Coal Mining Business to Subsidiary

In a separate announcement on Thursday, NTPC’s board approved a partial modification to transfer its coal mining business to its wholly-owned subsidiary, NTPC Mining Limited (NML). The coal mining segment contributed Rs 7,735.54 crore in revenue during the fiscal year 2024-25, accounting for 4.05% of NTPC’s consolidated turnover.

The transfer is valued at an initial purchase consideration of Rs 10,503.27 crore and will be executed in a phased manner, signaling NTPC’s strategic move to streamline operations amid the shift to renewable energy.

About NTPC

NTPC Limited, a Maharatna PSU under the Ministry of Power, is India’s largest power utility with operations spanning thermal, hydro, renewables, and nuclear. With an installed capacity of over 76 GW, NTPC plays a critical role in meeting India’s energy needs while driving the transition toward cleaner and sustainable energy sources.

Also Read: National Conference on Fly Ash Utilization and Transport Held by NTPC and Indian Railways in Noida


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