MSMEs to Tap ₹32,500 Crore Supply Opportunity in NTPC's Expansion Drive.

NTPC India’s ambitious plan to increase its installed capacity from 76 GW to 130 GW by 2032 is set to create significant opportunities for Micro, Small, and Medium Enterprises (MSMEs). The company’s projected procurement value is expected to grow from ₹19,075 crore in FY24 to ₹32,500 crore by 2032, offering MSMEs a substantial share in this growth.

In FY24, MSMEs accounted for 52% of NTPC’s total procurement value (₹19,075 crore), surpassing the Government of India’s target of 40%. Between April and October 2024 alone, NTPC procured ₹3,226 crore worth of materials from small units.

“The procurement from MSMEs has grown six-fold over the past five years, from ₹1,667 crore in FY20 to ₹9,851 crore in FY24. Similarly, the number of MSME vendors increased from 1,375 in FY20 to 3,047 in FY24,” said Pradeep Jain, AGM, NTPC India, during a session at the EEPC India’s IESS XII event in Chennai.

NTPC’s reduced dependence on imports is expected to further expand opportunities for domestic MSMEs to supply goods and services.

The company has also focused on inclusivity in its procurement processes. The number of SC/ST entrepreneurs supplying to NTPC rose from 23 in FY20 to 74 in FY24, with procurement values increasing from ₹15 crore to ₹25 crore. Women entrepreneurs have seen even more significant growth, with their numbers rising from 26 in FY20 to 258 in FY24, while procurement value surged tenfold, from ₹6 crore to ₹64.2 crore.

The Government e-Marketplace (GeM) has become a critical procurement channel for NTPC. The company’s purchases via GeM skyrocketed from ₹1,186 crore in FY22 to ₹35,000 crore in FY24. NTPC is targeting 100% procurement through GeM for materials, services, and works in the coming years.

To streamline procurement processes, NTPC established the Unified Shared Services Center (USSC) in Raipur in 2021. This center consolidates procurement activities across the organization, creating a unified platform for vendor engagement and improving efficiency.

With a growing focus on domestic sourcing and inclusivity, NTPC’s expansion is expected to create significant economic opportunities for MSMEs while supporting India’s broader manufacturing ecosystem.

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