---
endpoint: analytics
pattern: Power
status: done
latency_ms: 118999
conversation_id: 7cc49870-983f-46b7-b500-c90fa70c1ab0
citations: 9
created: 2026-05-31 18:57:50Z
---

# Who are the key customers and suppliers of NTPC?

# NTPC — Key Customers and Suppliers

NTPC Ltd. (BSE: 532555; NSE: NTPC) is India's largest power generator. As a regulated, cost-plus utility, its commercial structure is straightforward: it sells bulk electricity under long-term Power Purchase Agreements (PPAs) and procures fuel through long-term Fuel Supply Agreements (FSAs) and Gas Supply Agreements (GSAs). The customer and supplier rosters below are drawn from NTPC's most recent FY2024-25 Annual Report and FY2023-24 disclosures.

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## Key Customers (Buyers of NTPC Power)

NTPC's revenue comes overwhelmingly from energy sales to **bulk customers** — primarily state-owned electricity utilities and private DISCOMs — under long-term PPAs.

| Customer Group | Description |
|---|---|
| **State Power Distribution Utilities (DISCOMs)** | NTPC sells electricity to bulk customers, mainly electricity utilities owned by State Governments as well as private DISCOMs operating in States, generally under long-term PPAs entered into with the beneficiaries [7]. The Ministry of Power, Government of India, allocates power from new generating stations to designated State Utilities. |
| **POWERGRID & State Transmission Utilities** | NTPC supplies electricity to DISCOMs through the grid managed by central and state utilities like POWERGRID, which then distributes it to end consumers — POWERGRID is therefore the principal transmission counterparty rather than an end-customer [2]. |
| **Power Exchanges (IEX, etc.) — short-term surplus** | Un-Requisitioned Surplus (URS), merchant, and relinquished gas power is sold through NTPC's trading arm **NVVN** in the Day-Ahead Market (I-DAM), Real-Time Market (RTM) and Term-Ahead Market (TAM). In FY2024-25, ~6,392 million units worth ₹2,984 Crores was sold via power exchanges [8]. |
| **Indian Railways (new strategic offtaker)** | Railway Board has given in-principle approval for a JV between NTPC subsidiary NSPCL and the Ministry of Railways for an 800 MW plant at Bhilai supplying 680 MW to Railways, along with 400 MW from BRBCL-II (2x250 MW) [4]. |
| **Regulators & Government bodies (commercial counterparties)** | Tariffs are set by CERC and SERCs; the Appellate Tribunal for Electricity (APTEL) handles disputes. State Power Distribution Utilities sign PPAs with NTPC for power requisitions [8]. |
| **Customer engagement framework** | NTPC engages customers through Regional Power Committee (RPC) meetings, Technical Coordination Committees, and continuous engagement with state governments — particularly for new project development and resolution of payment issues by DISCOMs [3]. |

Customer concentration is therefore highly skewed toward Indian State Government-owned DISCOMs (which span nearly every Indian state and union territory), with PPAs typically structured under CERC's regulated tariff regime guaranteeing recovery of capacity charges (depreciation, interest, RoE) provided plant availability is met.

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## Key Suppliers (Fuel & Inputs)

NTPC's supplier base is concentrated in **coal** (the dominant fuel for ~80%+ of its thermal capacity), **natural gas / RLNG**, and **equipment / EPC partners** for new build-out.

### Coal Suppliers

NTPC has secured **100% fuel tie-up for its thermal capacity** through long-term Fuel Supply Agreements (FSAs) with coal companies, with a total Annual Contracted Quantity (ACQ) of **250.75 MMT across the NTPC group**; FY25 ACQ materialization stood at 90% [4].

| Supplier | Annual Contracted Quantity (ACQ) — as of Apr 1, 2025 | Notes |
|---|---|---|
| **Coal India Limited (CIL) subsidiaries** | **196.37 MMT** | Long-term FSAs, typically 20 years with 5-year review provision [1][5]. CIL is by far the largest single supplier. |
| **Singareni Collieries Company Limited (SCCL)** | **27.99 MMT** | State-owned coal company in Telangana; long-term FSA [1][5]. |
| **NLC India Ltd. (NLCIL) — Talabira mine** | 6.09 MMT (FY25) | MoU-based arrangement; under swapping agreement (MCL ACQ swapped to NLCIL for supply to NTPC's Lara plant) [6]. |
| **THDCIL — Amelia mine** | 3.49 MMT (FY25) | MoU-based; THDCIL is an NTPC group subsidiary [6]. |
| **NTPC's own captive mines (NTPC Mining Ltd / NML)** | 42.02 MMT (FY25) | Self-supply; production +22% YoY. NML is a wholly-owned subsidiary set up to consolidate mining operations [4]. |
| **Open-market domestic coal (competitive FoR bidding)** | 2.91 MMT (FY25) | To offset shortfall from linked sources [1]. |
| **Imported coal contracts** | 1.755 MMT (FY25) | Only ~0.9% of total receipts — sharply reduced vs prior years; awarded under Ministry of Power directives [1][4]. |

For logistics, ~60% of NTPC's coal-based capacity is connected to coal mines via **Merry-Go-Round (MGR) / belt conveyor systems**, and **Indian Railways** is a key transportation partner under an MoU for coal movement to plants [9].

### Gas / RLNG Suppliers

| Supplier | Volume / Contract | Notes |
|---|---|---|
| **GAIL (India) Ltd.** | Long-term GSAs for APM and non-APM gas, valid until **July 6, 2026**; plus a separate firm contract for **1.36 MMSCMD of RLNG**, valid until **April 2028** [1]. Domestic gas supplies to NTPC have been nil since June 16, 2021 (gas diverted to City Gas Distribution sector). |
| **Domestic spot RLNG suppliers** (incl. public-sector gas marketing companies) | Spot RLNG via limited tenders and 'Single Offer' procurement | Used to supplement firm RLNG, structured to avoid penalties for short supply / under-offtake [1]. |

NTPC and GAIL also signed a non-binding MoU in February 2025 covering renewable energy, energy storage, and the commercialization of **Green Hydrogen, Green Ammonia, and Green Methanol** [4] — positioning GAIL as a strategic partner beyond fossil fuels.

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## Synthesis

- **Customer concentration is government-heavy**: state-owned DISCOMs (under long-term cost-plus PPAs) dominate receivables, with POWERGRID as the transmission counterparty and IEX/power exchanges (via NVVN) acting as the marginal short-term offtaker. The newer Indian Railways relationship adds a second large captive PSU offtaker.
- **Supplier concentration is also government-heavy**: ~90% of contracted coal comes from CIL subsidiaries and SCCL — both Government of India / state-owned — backstopped by NTPC's own captive mines (now housed in NML) and small MoU-based volumes from NLCIL and THDCIL. GAIL is the near-monopoly counterparty for gas and RLNG.
- **The PSU-to-PSU structure** (Coal India → NTPC → State DISCOMs → POWERGRID) is the defining feature of NTPC's value chain — both upstream and downstream pricing/volume risks are largely intermediated through regulated tariff structures and government-owned counterparties, which is why NTPC's earnings stability is driven by regulated RoE (currently 15.5% under CERC's 2019-24 regulations [9], retained at 15.5% under the 2024-29 regulations) and plant availability rather than commodity price exposure.

---
**Sources**
[1] NTPC Ltd. — Annual Report FY2024-25 (period end 31-Mar-2025) — Strategic Fuel Management / Coal Sourcing section
[2] NTPC Ltd. — Annual Report FY2024-25 — Health and Safety Impacts of Our Product (POWERGRID transmission disclosure)
[3] NTPC Ltd. — Annual Report FY2024-25 — Customer Engagement / Engagement with Central and State Governments
[4] NTPC Ltd. — Annual Report FY2024-25 — Strategic Partnerships (GAIL MoU, Railways JV) / Fuel Security Outlook
[5] NTPC Ltd. — Annual Report FY2024-25 — Strategic Fuel Management (ACQ details)
[6] NTPC Ltd. — Annual Report FY2024-25 — Coal Sourcing (NLCIL Talabira, THDCIL Amelia)
[7] NTPC Ltd. — Annual Report FY2024-25 — Note 69 (Ind AS 115 Revenue from contracts with customers)
[8] NTPC Ltd. — Annual Report FY2024-25 — Power Exchange Sales / NVVN trading
[9] NTPC Limited — Shareholder/Analyst Call (FY2020 commentary on FSAs, MGR linkage, captive mining)

## Citations

- [1] **Ntpc Ltd. (532555-IN) - Annual Report for period end 31-Mar-2025 (English) - PDF** · external
- [2] **Ntpc Ltd. (532555-IN) - Annual Report for period end 31-Mar-2025 (English) - PDF** · external
- [3] **Ntpc Ltd. (532555-IN) - Annual Report for period end 31-Mar-2025 (English) - PDF** · external
- [4] **Ntpc Ltd. (532555-IN) - Annual Report for period end 31-Mar-2025 (English) - PDF** · external
- [5] **Ntpc Ltd. (532555-IN) - Annual Report for period end 31-Mar-2025 (English) - PDF** · external
- [6] **Ntpc Ltd. (532555-IN) - Annual Report for period end 31-Mar-2025 (English) - PDF** · external
- [7] **Ntpc Ltd. (532555-IN) - Annual Report for period end 31-Mar-2025 (English) - PDF** · external
- [8] **Ntpc Ltd. (532555-IN) - Annual Report for period end 31-Mar-2025 (English) - PDF** · external
- [9] **NTPC Limited - Shareholder/Analyst Call** · external

