State-run power giant NTPC plans to rope in a strategic investor for its clean energy arm NTPC Renewable Energy (NREL) ahead of its listing on bourses in October 2022, according to a senior official. The listing of NREL is part of the state-run power giant’s overall Rs 15,000-crore divestment plan in next three years. The divestment plan also includes listing of North Eastern Electric Power Corporation (NEEPCdO) and NTPC Vidyut Vyapar Nigam (NVVNL) by March 2024.
The plan also includes sale of its stake in NTPC-SAIL Power Company (NSPCL).
“NTPC has planned to bring a strategic investor for NREL which is expected to be listed sometime in October 2022. The strategic investor would be roped in before the listing of NREL on bourses,” a senior official told PTI.
The official also stated that the company needs huge funds for meeting its target of having 60GW renewable energy capacity mainly through NREL, which would be 45 per cent of its total 130 GW installed generation capacity envisaged by 2032.
The equity component of NREL would be around Rs 50,000 crore and rest of the requirement would be met through long-term loans, debentures, bonds and other such modes.
The plan to have 60 GW RE capacity by 2032, would entail an investment of Rs 2.5 lakh crore.
NREL, a 100 per cent subsidiary of NTPC Ltd, currently has a renewable project portfolio of 3,850 GW of which 970 MW projects are under construction and 2,880 MW projects have been won and are in different phases of implementation.
NTPC had incorporated NREL with the Registrar of Companies, NCT of Delhi & Haryana on October 7, 2020, to undertake renewable energy business.
The present installed capacity of NTPC Group is 67,907.5 MW (including 13,675 MW through JVs/Subsidiaries) comprising of 48 NTPC Stations (23 coal-based stations, 7 gas-based stations, 1 hydro station, 1 small hydro, 15 solar PV and 1 wind-based station) and 26 joint venture stations (9 coal based, 4 gas based, 8 hydro, 1 small hydro, 2 wind and 2 solar PV).
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The initiative is expected to help NTPC demonstrate an environment-friendly technology to produce green power and chemical. It is planned under the theme of “NETRA Green Campus” where the campus will have round-the-clock green power from Solar PV, battery storage, Hydrogen and RDF.
In line with the Prime Minister’s announcement at the recently concluded CoP26, the government is committed to achieving 500 GW of installed electricity capacity from non-fossil fuel sources by the year 2030.