With hand on heart, answer these questions. Before the announcement of its IPO, did you know that NTPC had a subsidiary called NTPC Green Energy? Or have any idea what business it did? Or, more importantly, that its IPO would get listed at more than Rs. 1 lakh crore market capitalisation? If the answers are yes, then you know all about the power sector and we need to go no further. But if not, read on, and ignore the narratives suggested by the Nifty and Sensex. The power sector, which faced big trouble between 2007 to 2015, has made a comeback. In two ways. First, the traditional business is no longer a loss-making proposition. And second, the sector is seeing a transformation with the addition of new green energy capacity. And the biggest positive: Demand is always higher than supply.
