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NTPC moves to raise ₹15,000 cr by listing arms

Monika Yadav New Delhi | Updated on October 04, 2021

The company is mulling to merge its 800-MW Koldam hydro-power project in Himachal Pradesh with the renewables arm

Will sell shares in NTPC Renewable Energy within a year; plans IPOs of NEEPCO and NTPC NVVN by 2024

Public sector power giant NTPC hopes to raise ₹15,000 crore by 2024 through the listing of its three units — NTPC Renewable Energy, North Eastern Electric Power Corp (NEEPCO) and NTPC Vidyut Vyapar Nigam.

According to a senior company official, NTPC is planning to sell shares in NTPC Renewable Energy within a year. Meanwhile, it is planning initial public offerings (IPOs) of NEEPCO and NTPC NVVN by March 2024.

“NTPC is also planning a stake-sale in NTPC-SAIL Power Co, which is a joint venture with Steel Authority of India (SAIL),” the official said. He added that the NTPC Renewable Energy’s target will be to have a minimum of 10 GigaWatts of generation capacity by the time it is listed.

“The company is mulling to merge its 800-MW Koldam hydro-power project in Himachal Pradesh with the renewables arm,” the official added.

The above asset monetisation is part of the government’s plan of garnering ₹70,000 crore through the sale of the assets of state-owned companies including PowerGrid, NTPC and Rural Electrification Corporation (REC).

Government think-tank NITI Aayog has identified assets worth ₹39,832 crore for the purpose of monetisation by 2025 in its recently released National Monetisation Plan (NMP) document.

The assets considered for monetisation in power sector aggregate to 6 GW, of which, 3.5 GW is from hydel and 2.5 GW from renewable energy including solar and wind.

Per the NMP document, the entities in the power sector considered for monetisation are NHPC, NTPC, NLC (Coal Ministry) and SJVNL.

Green energy usage

In addition, NTPC is also looking at raising the green energy usage to reduce its dependence on coal. The company has enhanced its target of renewable energy projects to 60 GW by 2032.

On the issue of coal supply, the official said that an inter-Ministerial sub-Group led by the Coal Ministry has been keeping tabs over the stock situation twice a week.

Published on October 03, 2021

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