NTPC plans IPO of renewables subsidiary.

“We will shortly go public with NTPC Renewables,” said Gurdeep Singh, chairman and managing director of the power generation powerhouse, at the Bloomberg New Energy Finance (BNEF) Summit in New Delhi on Tuesday.

NTPC, originally known as the National Thermal Power Corporation, is essentially a coal-based player. In October 2020, it created its wholly-owned subsidiary NTPC Renewable Energy to focus on its green energy sector. The firm has quadrupled its renewable energy objective and now plans to have 60,000 megawatts (MW) of wind and solar power by the end of 2032.

 

Currently, the established renewable power capacity of the company is 1,365 MW, and by FY24, it expects to add about 13,000 MW of green power producing base. NTPC talks with Gujarat, Rajasthan, Maharashtra, and Andhra Pradesh to distribute land packages for 17,000 MW of renewable energy plans following the Ultra Mega Renewable Energy Power Parks project.

 

It offered the lowest Rs 1.99/ unit price and Rs 2/ unit in the recent solar auctions. It has significantly reduced costs of debt owing to its government backing and excellent ratings. It has also profited from a lower tax rate since the projects would be set up under NTPC Renewable Energy.

 

India has set an aim to raise renewable energy capacity to 4,50,000 MW by 2030 from 95,000 MW at now. Reliance Industries (RIL) has recently revealed a significant strategy for green energy and pledged initial expenditures of Rs 75,000 crore out of its internal resources over the next three years. At the BNEF summit, Union electricity minister RK Singh said RIL’s statement was “music to my ears.”

 

RIL’s plan includes setting up production plants for solar cells and modules, a battery unit for power storage, a hydrogen factory, and an electrodialysis plant to produce green hydrocarbons, which are typically this same foodstuff needed to support the development of renewable energy and presently these items are not abundantly made in India.