Power giant NTPC begins hunt for investors for its subsidiary to raise capital


State-owned power giant NTPC has begun the hunt for investors to raise capital for its subsidiary NTPC Green Energy Ltd. According to a report by PTI news agency, a source said that NTPC Green Energy might get an investor by March 2023.

“NTPC is in the process of roping in a strategic investor for its subsidiary NTPC Green Energy Ltd. The company wants to raise 2,000 crore to 3,000 crore through this transaction, which is likely to be completed during this fiscal year or by March 2023,” the agency wrote citing a source.

Further, the report mentioned that some pension funds, equity investors, and big firms had evinced their interest to invest in NTPC Green Energy Ltd.

In view of NTPC’s plan to have 60 GW capacity through RE (Renewable Energy) sources, constituting nearly 45% of its overall power generation capacity by 2032, the company would require over 2.5 lakh crore to achieve this ambitious target in the next one decade. NTPC, under the ministry of power, is the country’s largest power-producing company. The company supplies one-fourth of the total electricity in the country.

At present, the NTPC has a commissioned renewable energy capacity of 2,332 MW. Overall, the installed power generation capacity, including fossil-fuel based, of the NTPC Group (including joint ventures and subsidiaries) stands at 70,254 MW.

The government has set the target of having 500 GW of power generation capacity from clean sources like solar, wind, and hydro plants by 2030.

Last month, Union power minister R K Singh on Friday directed NTPC to more than double its capacity by 2030.

Singh said that NTPC must contribute at least 25% to the 800 GW level.

NTPC must increase its capacity as the power demand will continue to grow in India and the company must eye for a larger share of the market, he said.

Catch all the Corporate news and Updates on Live Mint.
Download The Mint News App to get Daily Market Updates & Live Business News.



Source link