NTPC Hopes To Raise Rs 2,000 crore From Stake Sale In NGEL

Highlights :

  • The sale of stake could take place through private placement of shares or an initial public offering or both.
  • The funds that will come from the sale of stake will be utilized in the expansion of renewable energy capacity of NTPC.

State owned National Thermal Power Corporation (NTPC) is planning to sell a stake in its subsidiary NTPC Green Energy (NGEL) that was formed to develop renewable energy projects. NTPC is expected to raise about Rs 2,000 crore from the sale of the stake. The corporation has earlier indicated that the sale was likely by October this year.

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The only issue that still seems to be decided is whether the the sale would happen through private placement of shares or an initial public offering or both. According to reports, NTPC has already attracted investors in an informal roadshow that happened in April in Mumbai, Maharashtra.

Renewable Dash of NTPC

The official website of NTPC reveals that the CPSU has a present renewable power generation capacity of about 1,660 MW. The power producer also has 3,400 MW of capacity projects under construction. About 5,000 MW are also in the tendering process. In the beginning of May, NTPC had launched a tender for the development of 250MW or 500MWh of large scale battery storage project where the bidding is open for domestic and international players. Besides this, the PSU major, carrying the pressure of spiking power demand currently, has one of the biggest pipelines of projects in place.

NTPC will be building an ultra-mega renewable energy project of 4,750 MW in Gujarat’s Khavda. NTPC has also signed various agreements with the state governments of Rajasthan, Maharashtra for developing renewable projects of 10 GW and 2.5 GW capacity respectively. It has also signed a pact with the Damodar Valley Corporation (DVC) for the development of 2 GW of renewable energy.

NTPC also informs that projects of 4,783 MW of renewable energy have already been commissioned till date under developer mode. The renewable arm of NTPC has recently invited bids from electrolyser technology providers as NTPC REL wants to participate in upcoming green hydrogen tenders with them.

In October, 2020, NTPC had said that it aims to develop 60 GW of renewable energy in this decade only and in December, 2020, it was reported that the company will reduce its stake in its renewable arm to below 50 percent.

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