NTPC Limited , India's largest power generation company, has received a tax order amounting to ₹12.67 crore from the Principal Commissioner Central Tax Visakhapatnam. The company plans to challenge this order by filing an appeal with the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) in Hyderabad.

Tax Order Details

The order, issued under Section 73(2) of the Finance Act 1994 read with Section 174 of the CGST Act 2017, pertains to service tax on various items for the financial years 2016-17 and 2017-18. The breakdown of the order is as follows:

Disputed Items

The tax demand covers three main areas:

1. Service tax on guarantee commission
2. Reimbursement to Central Industrial Security Force (CISF) for arms and ammunition
3. Manpower supply

Company's Response

NTPC has stated that it will file an appeal before CESTAT, Hyderabad within the prescribed timeline. The company maintains that this order will not have a material impact on its financials, operations, or other activities.

Regulatory Compliance

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, NTPC has duly informed the stock exchanges about this development.

This tax order comes at a time when many companies are facing increased scrutiny from tax authorities. However, NTPC's prompt disclosure and planned appeal demonstrate its commitment to addressing regulatory matters transparently and proactively.

NTPC , India's largest power generation company, is making strategic moves to secure its position in the nuclear energy sector. The state-owned enterprise is actively exploring the acquisition of overseas uranium assets to ensure a stable fuel supply for its future nuclear projects, aligning with its clean energy diversification strategy.

Key Developments

• NTPC's board has approved a draft Memorandum of Understanding (MoU) with Uranium Corporation of India Limited (UCIL) for joint techno-commercial due diligence of overseas uranium assets.
• The company is set to enter the nuclear power sector through a joint venture called ASHVINI with Nuclear Power Corporation of India Ltd (NPCIL) for the 2,800 MW Mahi Banswara Nuclear Power Project in Rajasthan.
• NTPC has formed a subsidiary, NTPC Parmanu Urja Nigam Ltd, to explore individual nuclear projects.
• Discussions are underway with US-based Clean Core Thorium Energy for ANEEL fuel development.

NTPC's Current and Future Energy Mix

NTPC currently boasts an installed capacity of 83,026 MW across various energy sources, including coal, gas, hydro, and solar. The company's foray into nuclear power represents a significant diversification of its energy portfolio.

India's Nuclear Power Landscape

Strategic Implications

NTPC's move to acquire overseas uranium assets is a forward-thinking approach to address potential fuel supply challenges for its nuclear ambitions. This strategy not only supports the company's diversification into clean energy but also aligns with India's broader goals of expanding its nuclear power capacity.

The joint venture with NPCIL for the Mahi Banswara project, where NPCIL holds 51% and NTPC owns 49%, marks NTPC's official entry into the nuclear power sector. This partnership leverages NPCIL's expertise in nuclear power plant operation and NTPC's experience in power project execution.

The formation of NTPC Parmanu Urja Nigam Ltd further underscores the company's commitment to exploring individual nuclear projects, potentially accelerating its growth in this sector.

NTPC's engagement with Clean Core Thorium Energy for ANEEL fuel development indicates the company's interest in innovative nuclear fuel technologies, which could enhance efficiency and safety in future nuclear power plants.

As India aims to significantly increase its nuclear power capacity by 2047, NTPC's strategic moves position the company as a key player in the nation's nuclear energy future, contributing to a more diverse and cleaner energy mix for the country.