NTPC plans IPO for Rs 2.5 trillion expansion of renewables business

Published On: Friday, July 2, 2021 | By:

NTPC plans IPO for Rs 2.5 trillion expansion of renewables business

India’s largest power generator and State-run Company NTPC has plans to list its arm NTPC Renewable Energy Ltd in 2022-23, to raise funds for achieving its ambitious target of 60 GW installed renewable energy capacity by 2032, which entails a total investment of Rs 2.5 lakh crore, a source said. The Company did not disclose the quantum of money to be raised through the initial public offering (IPO) of the NTPC Renewable Energy but said that the equity component of the firm would be around Rs 50,000 crore and rest of the requirement would be met through long-term loans, debentures, bonds and other such modes. It’s intended to enable a dramatic transformation over the next decade for a company that relies on coal to produce the vast majority of its electricity. NTPC is aiming to double generation capacity to 130 gigawatts by 2032 and slash the share of fossil fuels in that energy mix to about half from 92% currently.

NTPC Chairman and Managing Director Gurdeep Singh had said, "We should not focus on one way of raising funds. We want to soon go to the public for raising funds. He added that the company would add 7-8 GW RE every year, which would not be an uphill task for it. NTPC plans to build large renewable energy parks and has secured land for a 5-gigawatt facility in the western state of Gujarat, Singh said.

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