This page is part of our public exclusion list — a transparency tool that shows which companies we screen out and why. It is not investment advice, and it is not an accusation. But it is subject to change as our understanding of the facts evolves.
NTPC Limited is India’s largest power generation utility, operating a fleet that is overwhelmingly dependent on fossil fuels. As of its most recent disclosures, the company derives approximately 83% of its total installed capacity of over 73 gigawatts from coal-fired power plants. This makes its generation portfolio among the most carbon-intensive in the global utility sector.
The company’s operational history is marked by significant regulatory penalties for environmental non-compliance. In February 2022, the National Green Tribunal directed an NTPC generating unit to pay ₹8.26 crore (approximately $1 million) for failures to comply with its environmental clearance and consent conditions. This penalty is part of a broader pattern documented over the past decade, including a 2018 investigative report that catalogued violations related to land acquisition, pollution, and community impact across multiple NTPC plants. Further, in 2020, NTPC was reported to be among state-run entities pushing to weaken rules requiring covered transportation of coal, a measure intended to reduce particulate emissions.
While NTPC has announced carbon accounting and management initiatives, its fundamental business model remains anchored in coal. The company continues to develop new coal-fired capacity and has not announced a phase-out plan for its existing fleet, indicating a systematic failure to align its operations with the emissions reduction pathway required by its sector.
NTPC Limited is India's largest power generation utility, with a business model fundamentally anchored in fossil fuels. As of its 2024-25 annual report, the company operates a fleet with an installed capacity of approximately 76 gigawatts. Over 90% of this capacity—about 69 gigawatts—is derived from coal and natural gas. The company is actively expanding this fossil fuel base, with multiple new coal-fired power units under construction.
While NTPC has announced diversification into renewable energy and pilot projects like a certified hydrogen refuelling station, its core operations and capital expenditure remain overwhelmingly committed to fossil fuel infrastructure. The company's expansion of coal capacity directly contradicts global decarbonization pathways necessary to meet climate targets. Its scale as the dominant state-owned power producer makes its fossil-dependent strategy a material contributor to India's greenhouse gas emissions and air pollution.
NTPC Limited operates one of the largest coal-fired power generation fleets in India, with an installed capacity of over 70 gigawatts. The company's extensive reliance on coal mining and combustion has resulted in documented, severe environmental damage across multiple sites. This includes the contamination of soil and groundwater with toxic heavy metals and fly ash, as well as significant air pollution impacting local vegetation and ecosystems.
Specific legal actions highlight this pattern. As of early 2025, NTPC was engaged in an appeal before the National Green Tribunal in India (Appeal No. 28 of 2024, NTPC Ltd. vs. The State of Uttar Pradesh) concerning environmental damage and the cost of restoration at its Unchahar plant. Furthermore, a 2018 report by The Environmental Foundation Limited (EFL) detailed severe pollution and ecological harm caused by NTPC power plants at their locations. The company's environmental impact assessments, such as for its Darlipali plant, acknowledge ongoing risks of dust deposition and changes to local vegetation from gaseous emissions.
The scale of NTPC's coal operations, combined with active legal proceedings addressing environmental restoration, demonstrates a documented history of ecological damage directly tied to its core business activities.
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Companies appear on our exclusion list based on our investment judgment — not because they've done anything illegal. This is a difference of values and opinion, not an accusation of wrongdoing. Exclusion does not constitute a recommendation against investing in any company, and absence from the list does not constitute a recommendation to invest.
This information is provided for educational and transparency purposes only and should not be relied upon as investment advice. Data is drawn from independent watchdogs, NGOs, government registries, and Ethical Capital's ongoing research — see Research Sources for the full list.
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