NTPC plans to rope in strategic investor for its clean energy arm NREL

State-run power giant NTPC plans to rope in a strategic investor in clean energy arm NTPC Renewable Energy Ltd (NREL) ahead of its listing in October 2022, according to a senior official.

The NREL listing is part of the state energy giant's Rs 15,000-crore divestment plan over the next three years. The divestment plan also includes the inclusion of North Eastern Electric Power Corporation Ltd (NEEPCdO) and NTPC Vidyut Vyapar Nigam Ltd (NVVNL) by March 2024.

The plan also includes the sale of its stake in NTPC-SAIL Power Company Ltd (NSPCL).

A senior official told PTI: "NTPC has planned to bring in a strategic investor to NREL which is expected to be listed sometime in October 2022. The strategic investor will be restricted before the listing of NREL on bourses." 

The official also stated that the company needs large funds to achieve its goal of acquiring 60 GW of renewable energy capacity mainly through NREL, which would be 45 percent of the total installed generation capacity of 130 GW envisaged by 2032. 

The equity component of NREL will be around Rs 50,000 crore and the rest of the requirements will be met with long-term loans, debentures, obligations and other such modes.

The plan to have 60 GW RE capacity by 2032, would entail an investment of Rs 2.5 lakh crore.

NREL, a 100% subsidiary of NTPC Ltd, currently has a portfolio of 3,850 MW renewable projects of which 970 MW are under construction and 2,880 MW have been won and are in different phases of implementation.

NTPC had incorporated NREL with Registrar of Companies, NCT of Delhi & Haryana on October 7, 2020, to launch the renewable energy business.

Present installed capacity of NTPC is 67,907.5 MW (including 13,675 MW through joint ventures / subsidiaries) comprising 48 NTPC plants (23 coal-fired plants, 7 gas-based plants, 1 hydro station and 1 small hydro, 15 solar PV, and 1 wind base station) and 26 joint venture stations (9 coal, 4 gas based, 8 hydro, 1 small hydro, 2 wind and 2 solar PV).

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