CHENNAI: State-run power producer NTPC Ltd. is considering an initial public offering (IPO) of its newest subsidiary NTPC Renewable Energy Ltd. in an effort to raise capital that will fund its ambitious clean energy targets. The company has set itself a goal of achieving 60 GW of installed renewable energy capacity by 2032.
Speaking about the company’s clean energy plans at a virtual event on Tuesday, NTPC’s chairman and managing director Gurdeep Singh said that NTPC was not just looking at one single avenue to mobilise funds. “We should not focus on one way of raising funds. We want to soon go to public for raising funds,” he said, noting that NTPC would add 7-8 GW of renewable energy capacity every year. Singh pointed out that over the past five years, NTPC has not added any thermal capacities.
NTPC had, only last October, incorporated a new wholly-owned subsidiary called NTPC Renewable Energy Ltd to push forward its clean energy businesses. The RE unit currently has three projects under development for a cumulative capacity creation of 670 MW. All three are solar facilities: one each at Bhensada (320 MW) and Chhattargarh (150 MW) in Rajasthan, and another at Surendranagar (200 MW), Gujarat.
This May, NTPC RE Ltd also inked a power purchase agreement (PPA) with Gujarat Urja Vikas Nigam Ltd to sell electricity from its solar projects. The unit had said that with this, its total capacity under Tariff-based Competitive bidding (TBCB) has risen to 1.4 GW. It has also been alloted land in the Rann of Kutch by the Gujarat government for the development of a 4,750 MW solar power park.