NTPC’s reduced import dependence would create more opportunities for domestic MSMEs to supply goods and services in the coming years | Photo Credit: DEEPAK KR

NTPC India’s ambitious plan to expand its installed capacity from 76 GW to 130 GW by 2032 is set to unlock significant business opportunities for Micro, Small, and Medium Enterprises (MSMEs). With the company’s procurement value projected to grow from ₹19,075 crore in FY24 to ₹32,500 crore by 2032, MSMEs — already accounting for over half of NTPC’s procurement in FY24 — are well-positioned to benefit.

An official of NTPC said the company’s reduced import dependence would create more opportunities for domestic MSMEs to supply goods and services in the coming years.

Of the ₹19,075 crore (excludes OEM/OES/STE work contract /supply and election contracts) total procurement in FY24, MSMEs accounted for 52 per cent (as against the target of 40 per cent set by the Government of India. In this fiscal (as of October 2024), NTPC has procured ₹3,226 crore worth of materials from small units.

“The procurement from MSMEs has seen a six-fold increase in last five years – ₹1,667 crore in FY20 to ₹9,851 crore in FY24. Similarly, the number of MSME vendors has seen an increase of 2.2 fold – from 1,375 vendors in FY20 to 3,047 vendors in FY24,” said Pradeep Jain, AGM, NTPC India, while addressing a session at EEPC India’s IESS XII event in Chennai.

inclusivity in procurement

He also said NTPC was also ensuring inclusivity in its procurement process. The number of SC/ST entrepreneurs supplying to NTPC increased from 23 in FY20 to 74 in FY24, with the procurement value rising from ₹15 crore to ₹25 crore.

Similarly, the number of women entrepreneurs supplying goods and services to NTPC saw a significant increase, growing from 26 in FY20 to 258 in FY24. Procurement from women entrepreneurs has grown tenfold during this period, from ₹6 crore to ₹64.2 crore.

The Government e-Marketplace (GeM) continues to be a critical channel for NTPC. The company’s procurement via GeM has seen a sharp increase, rising from ₹1,186 crore in FY22 to ₹35,000 crore in FY24. NTPC is committed to achieving 100 per cent procurement through GeM, covering materials, services, and works procurement.

To streamline procurement operations, NTPC established the Unified Shared Services Center (USSC) in 2021, headquartered in Raipur. This centre consolidates procurement activities across the organization, providing a unified platform for vendor engagement.

Published on November 29, 2024