NTPC Transfers 15 Renewable Energy Assets Worth Over Rs 10,000 Cr to Subsidiary NGEL

NTPC REL Issues Tender for Substation Pkg for 630 MW Solar Park

India’s largest power utility NTPC has transferred 15 renewable energy assets worth Rs 10,0066.99 cr to its wholly-owned subsidiary, NGEL (NTPC Green Energy Ltd). The transfer was achieved under a Business Transfer Agreement under the aegis of the National Monetization Pipeline (NMP) of Government of India. The NMP sets mandate for the transfer of revenue rights.

As on 31 March, 2022, the net worth of the 15 renewable energy assets stood at Rs 13.65 billion. This accounts for  1.01% NTPC’s net worth, which is Rs 1.35 trillion.

The agreement paves the way for the transfer of 100% equity shareholding of NREL via a Share Purchase Agreement, that took place on 8 July, 2022.

According to a regulatory filing, NTPC has transferred all its stake in NTPC Renewable Energy to NGEL for Rs 731.17 cr.

The energy conglomerate has set its sights on augmenting capacity. The decision is part of its corporate business plan to give new fillip its goal of achieving 60 GW capacity of renewable energy by FY 32.

Last year, NTPC was mulling over selling a stake in its subsidiary NTPC Green Energy, which was formed to develop renewable energy projects. These project transfers will presumably make the firm a more attractive option for potential investors, even as NTPC has made it clear that it is seeking significant investor/s with a long term view of the same. Tata Power Limited has just closed an investment of over Rs 4000 crores from Greenforest New Energies Bidco, a joint venture between BlackRock and Mubadala Investment Company, for buying up to 11.43% of TPREL.