With the decision to pick up majority stake in the 1,320 MW Sarguja power project in Chhattisgarh, NHPC is all set to directly compete with NTPC, the country's biggest thermal power producer. The project was earlier proposed to be developed jointly by the state and the Indian Farmers Fertiliser Cooperative (IFFCO).

“We have decided to pick up 74% stake of IFFCO in the joint venture power project in Chhattisgarh being developed on super critical technology. A MoU in this regard has already been signed with Chhattisgarh State Power Holding Company (CSPHCL) and Indian Farmers Fertiliser Cooperative (IFFCO),” ABL Srivastava, director finance, NHPC was quoted saying.

He added that they plan to complete the power plant in 44 months time after getting the approval from cabinet committee on economic affairs.

According to a news report in The Financial Express, NHPC is expected to pump in close to Rs 6,500 crore into the project by virtue of its holding in the new entity. The total investment required in the power project is close to Rs 5,000 crore while the balance is needed for the development of 400 KV transmission line required to evacuate the power.

For NHPC, the development is significant as it will give its access to thermal power business The company was earlier barred from any direct participation. 
NHPC had indicated its intent of thermal foray few years back through its subsidiary Narmada Hydroelectric Development Corp (NHDC) stationed in Madhya Pradesh.