[9] The company was founded on 7 November 1975 by India's former Prime Minister Indira Gandhi as National Thermal Power Corporation Private Limited.

In 1983, NTPC began commercial operations and earned profits of INR 4.5 crores in FY 1982–83.

During 2000, it started construction of its first hydro-electric power project, with 800 MW capacity, in Himachal Pradesh.

[10]In 2002, it incorporated 3 subsidiary companies: NTPC Electric Supply Company Limited for forward integration by entering into the business of distribution and trading of power; NTPC Vidyut Vyapar Nigam Limited for meeting the expected rise in energy trading; and NTPC Hydro Limited to carry out the business of implementing and operating small and medium hydropower projects.

The primary reason for this change was the company's foray into hydro and nuclear based power generation along with backward integration of coal mining.

[10] During 2008 and 2011, NTPC entered into joint ventures with BHEL, Bharat Forge, NHPC, Coal India, SAIL, NMDC, and NPCIL to expand its business of power generation.

In July 2014, ICVL acquired a 65 percent stake in the Benga coal mine in Mozambique from the Rio Tinto Group.

All these load dispatch centers come under Power System Operation Corporation Limited (POSOCO).

The company intends to add 10000 MW of Solar PV capacity in the next five years.

On 18 July 2015, NTPC declared commercial its first Hydro Power plant at Koldam in the state of Himachal Pradesh.

The public sector company has signed a memorandum of agreement (MoU) with the Government of Sri Lanka and Ceylon Electricity Board for setting up a 500 MW (2x250) coal-based thermal power plant in the island nation.

[21] NTPC has also been allotted coal blocks, namely Pakri Barwadih, Chatti Bariatu, and Kerandari in Jharkhand as well as Talipalli, Chhattisgarh, and Dulanga in Odisha.

NTPC was ranked second among the 250 largest power producer energy traders in the world by Platts in 2015.

Draft National Electricity Plan (2016), prepared by GoI, states that India does not need additional coal-fired power plants until 2027 with the commissioning of various coal-based power plants which are presently under construction.

[33] In the future, for the satisfactory growth mainly from wind and solar power projects, NTPC is ready to slash all its extra profit margins on capital deployed to bring down the power sale price at par with the IPPs to secure the projects in open competitive bidding.

Government has decided to scrap the coal fired power stations which are more than 25 years old to reduce the pollution.

[35] To utilize its proven O&M expertise, NTPC may venture on a major scale to implement the solar thermal storage power as they can offer clean and cheaper electricity than fossil fuel-fired power generation plants.

[36] Rather than install emissions-cutting technologies, NTPC has chosen to lobby the government to extend pollution reduction deadlines.

[37] Loharinag Pala Hydro Power Project by NTPC Ltd: Loharinag Pala Hydro Power Project (600 MW i.e. 150 MW × 4 units) is located on the river Bhagirathi (a tributary of the Ganges) in Uttarkashi district of Uttarakhand state.

Rupasiyabagar Khasiabara HPP, 261 MW in Pithoragarh, Uttarakhand State, near China Border, is yet to be given investment approval.. Badarpur Thermal Power Station has been permanently closed due to pollution issues in Delhi NCR.