Key Points of CCEA Approval of Higher NTPC Investment in Green Arm:
- CCEA has granted permission to NTPC to increase its investment in NTPC Green Energy Ltd (NGEL) to achieve its target of 60 GW renewable energy capacity.
- NGEL currently has 15 operational or nearing commercial renewable energy assets with a capacity of 2,861 MW.
- NTPC plans to expand its renewable energy portfolio by participating in competitive bidding and emerging opportunities through its subsidiary NTPC Renewable Energy Limited (NREL).
- The move towards low carbon emissions aligns with India’s commitment in COP 26 and aims to diversify India’s energy generation and reduce the country’s coal import bills while ensuring 24*7 power supply.
- The project is expected to generate direct and indirect employment opportunities for the local people during the construction and operation stages.
- The CCEA has also approved the IPO of Indian Renewable Energy Development Agency (IREDA) to raise capital and boost the renewable energy financing company’s growth plans.
- The IPO will help unlock the value of the government’s investment, provide an opportunity for the public to acquire a stake in the national asset, and enable IREDA to raise capital without depending on the public exchequer.
Key Points of CCEA Approval of Higher NTPC Investment in Green Arm:
NTPC to Raise Investment in NTPC Green Energy as Indian Renewable Energy Development Agency Gets Approval for IPO
In a significant development for India’s renewable energy sector, the cabinet committee on economic affairs (CCEA) has granted permission to NTPC, the state-run thermal power major, to increase its investment in its subsidiary NTPC Green Energy Ltd (NGEL). The move is part of NTPC’s plan to achieve a target of 60 GW renewable energy capacity.
Additionally, the CCEA has approved the Indian Renewable Energy Development Agency’s (IREDA) initial public offering (IPO) to raise capital and boost the renewable energy financing company’s growth plans.
The cabinet committee’s approval also exempts NGEL’s investment in NTPC Renewable Energy Limited (NREL) and its other joint ventures or subsidiaries beyond the monetary ceiling of ₹5,000 crore to ₹7,500 crore. NGEL currently has 15 renewable energy assets of 2,861 MW, which are operational or nearing commercial operation date. Through its subsidiary NREL, NGEL plans to expand its renewable energy portfolio by participating in competitive bidding and emerging opportunities in the green energy business.
The move towards low carbon emission NTPC aligns with India’s commitment in COP 26. It aims to diversify India’s energy generation and reduce the country’s coal import bills while ensuring 24*7 power supply to every corner of the country. The project is expected to generate direct and indirect employment opportunities for the local people at the construction stage as well as during O&M stage.
Moreover, the CCEA’s approval to list shares of the renewable energy-focused financing company IREDA through the IPO route marks a significant boost for the renewable energy sector. The IPO will help unlock the value of the government’s investment, provide an opportunity for the public to acquire a stake in the national asset, and enable IREDA to raise a part of its capital requirement for meeting growth plans without depending on the public exchequer. Besides, the move is expected to improve governance through greater market discipline and transparency arising from listing requirements and disclosures.
IREDA is a wholly owned government of India, Mini-ratna (Category-I) CPSE that finances renewable energy and energy efficiency projects in India. The latest CCEA decision supersedes an earlier one taken in June 2017 and is necessitated by the change in capital structure following the government’s infusion of capital worth ₹1500 crore in March 2022.
About NTPC:
NTPC, previously called National Thermal Power Corporation Limited, is a government-owned central public sector undertaking that operates in the field of electricity generation and related activities in India. The Ministry of Power, Government of India, owns the company, and its headquarters are located in New Delhi.
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