NTPC RE Arm to Get Strategic Investor Ahead of Oct’22 Listing

State-run power giant NTPC plans to rope in a strategic investor for its clean energy arm NTPC Renewable Energy Ltd (NREL) ahead of its listing on bourses in October 2022, according to a senior official, media reports have said.

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 Ltd (NEEPCdO) and NTPC Vidyut Vyapar Nigam Ltd (NVVNL) by March 2024. The plan also includes sale of its stake in NTPC-SAIL Power Company Ltd (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.

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).