NTPC to raise Rs 2,000 crore via stake sale in renewable energy arm

NTPC is planning to raise around Rs 2,000 crore from the sale of a stake in its renewable-energy subsidiary NTPC Green Energy (NGEL). The sale could be through private placement of shares or an initial public offering (IPO) or both, a company official said.

NTPC, he said, received a “good” response from the investors in the informal roadshow that took place last month in Mumbai. The proceeds from the stake sale will be used to expand the state-run firm’s renewable energy capacity.

Currently, state-run power producer has around 1,660 MW of renewable power generation capacity. Projects having a capacity of 3,400 MW are under construction and around 5,000 MW are in the process of tendering.

It is also implementing a 4,750 MW ultra-mega renewable energy project at Khavda in Gujarat and signed agreements with the governments of Rajasthan, Maharashtra and with Damodar Valley Corporation (DVC) for setting up renewable projects of 10 GW, 2.5 GW and 2 GW capacity respectively.

Apart from these, a total of 4,783 MW of renewable energy projects have been commissioned under developer mode so far. NTPC builds its renewable assets under two modes – engineering, procurement and construction mode and the developer mode. Under the developer mode, NTPC acts as an intermediary procurer where it procures power from the developers and sells to distribution companies with a trading margin.