NTPC plans IPO for green energy arm

New Delhi: NTPC plans to raise funds through an initial public offering (IPO) for its green energy unit NTPC Green Energy Ltd (NGEL) in this financial year, after Malaysia's Petroliam Nasional Berhad (Petronas) withdrew its offer for a 20% stake in the unit, said people in the know.

"The IPO will be on a book building basis," said one of the persons.

Petronas had pipped REC Ltd and Indraprastha Gas Ltd for the stake in a bidding last month, according to people privy to the information.


"After getting the final bids, there were further negotiations to up the value, but the (highest) bidder retracted it," the person said.

Petronas did not respond to ET's queries till press time.

NTPC plans to monetise assets of about ₹6,000 crore in FY24, the person said. The plan includes NGEL's IPO.

On March 17, the Cabinet Committee on Economic Affairs (CCEA) had approved increasing NTPC's investment in NGEL above the prescribed limit of ₹5,000 crore for a maharatna company in its subsidiary.

However, the person said, it is not as if NTPC will not look for strategic investors for NGEL in future.

Around 15 renewable energy assets of NTPC were transferred to NGEL towards the end of 2022-23. NGEL will drive India's largest power producer's ambitious clean energy programmes. The company will have subsidiaries and joint ventures to carry out the projects.

NTPC aims to have 60 GW of renewable energy capacity by 2032 on a standalone basis and 130 GW on consolidated level. The company is also working on nuclear power, green hydrogen, e-mobility and waste-to-wealth projects. Of the 60 GW, 40 GW would be through tariff-based competitive bidding, which would include bundling for round-the-clock power, NTPC earlier said.

India has committed to reduce emissions intensity of its GDP by 45% by 2030 and achieve about 50% cumulative electric power installed capacity from non-fossil fuel-based energy resources by the same timeline. It also plans to have 500 GW of non-fossil fuel-based installed capacity by 2030. With a share of 17% of the installed capacity, NTPC contributes nearly 24% of the total electricity produced in India.