News Update

NTPC Plans IPO For Generating Renewable Energy In A Huge Green Push

• ByStartupStory     |    July 3, 2021

India’s largest power generator, NTPC, plans IPO for generating renewable energy and aims  to take its renewables unit to 2.5 trillion rupees ($34 billion) clean energy expansion, according to a company official with knowledge of the plans. The New Delhi-based producer wants to list its NTPC Renewable Energy Ltd. unit in the next fiscal year, which begins in April 2022, however no official statements have been received. 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.

India’s biggest fossil-fuel tycoons and companies plan to expand in renewable energy with investor pressure mounting on businesses to reduce carbon emissions and as Prime Minister Narendra Modi’s government debates aggressive climate targets. Mukesh Ambani, Asia’s richest man, last month said Reliance Industries Ltd. will invest about $10 billion over three years in sectors including solar, hydrogen and batteries. NTPC plans to build large renewable energy parks and has secured land for a 5 gigawatt facility in the western state of Gujarat, the official said. It has also signed an accord with state-run oil explorer Oil and Natural Gas Corp. to set up offshore wind power plants, he said. In addition to the renewables unit IPO, the company will seek to issue bonds and add loans from domestic and overseas banks to fund its clean energy plans, according to the official. NTPC will also consider selling some assets to raise funds. The company has been raising the scale of its ambition in renewables, recently flagging it had almost doubled its clean energy target and would help develop 60 gigawatts of capacity by 2032.

 

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