India’s state-owned power giant, NTPC, has received the green light from the Department of Investment and Public Asset Management to publicly list its green energy subsidiary, NTPC Green Energy Ltd (NGEL), with plans to raise up to Rs 10,000 crore, a source reported to PTI.
NGEL is set to embark on its initial public offering to generate funds, expected to commence post-March, according to the insider. The approval for NTPC’s proposal to list NGEL was granted by the Department of Investment and Public Asset Management (DIPAM), paving the way for the company to enter the public market.
The raised capital will be allocated to NTPC’s strategic initiatives, primarily focusing on energy transition and the establishment of various green energy projects, including ventures in solar energy and green hydrogen.
In December 2023, NTPC’s Chairman and Managing Director, Gurdeep Singh, informed PTI that the company envisions listing its green energy division within the next 1-2 years, anticipating a surge in power demand. With a goal to add 60 GW of renewable energy capacity by 2030, NTPC aims to surpass this target ahead of schedule.
NGEL, a wholly-owned subsidiary of NTPC, currently operates with a capacity exceeding 3.4 GW and has an extensive pipeline of 26 GW, including 7 GW in the implementation phase.
Recently, NGEL inked a Memorandum of Understanding (MoU) with the Maharashtra government for the development of green hydrogen projects and related derivatives, amounting to an investment of Rs 80,000 crore. The MoU outlines plans for the establishment of green hydrogen, green ammonia, and green methanol projects, with a cumulative capacity of up to 1 million tons per annum. Additionally, the agreement includes initiatives such as pump hydro projects with a capacity of 2 GW and the development of renewable energy projects, with or without storage, totaling 5 GW in the state.
