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    NTPC gets 13 bids for minority stake sale in green unit

    Synopsis

    NTPC proposes to raise Rs 2,000 crore equity through a private placement that would be followed by an initial public offering by the green energy arm. India’s NIIF and Abu Dhabi-listed TAQA are also in the race for a stake, a company official said. “We have received good response for our EoI. We will now firm up our offer and call bids from these bidders in a month’s time,” the official said.

    A signboard of NTPC (National Thermal Power Corporation Limited) is seen outside its office in MumbaiReuters
    NTPC is also considering selling stakes in NTPC-SAIL Power Company Ltd, North Eastern Electric Power Corp (Neepco), and its power trading arm NVVN.
    NTPC has received 13 bids from investors such as the Canada Pension Plan Investment Board (CPPIB), ArcelorMittal, Malaysia’s Petronas, and Brookfield to pick a minority stake in its renewable arm NTPC Green Energy Ltd (NGEL).

    NTPC proposes to raise Rs 2,000 crore equity through a private placement that would be followed by an initial public offering by the green energy arm.

    India’s NIIF and Abu Dhabi-listed TAQA are also in the race for a stake, a company official said.

    “We have received good response for our EoI. We will now firm up our offer and call bids from these bidders in a month’s time,” the official said.

    NTPC is also considering selling stakes in NTPC-SAIL Power Company Ltd, North Eastern Electric Power Corp (Neepco), and its power trading arm NVVN.

    ET had on August 17 reported that NTPC has tapped global utilities and pension funds to raise equity for its clean energy platform.

    Company chairman and managing director Gurdeep Singh on Tuesday said NTPC is in the process of identifying strategic investors for NGEL and plans to complete the process in the current fiscal.

    NTPC Green Energy will be the driver for the company’s non-fossil businesses. The company has committed to adding 60 GW of renewable energy by 2032 on a total capacity of 130 GW. Presently, NTPC has a portfolio of 2,500 MW green assets and a pipeline of 4,500 MW, of which 1,500 MW is likely to be commissioned this fiscal.

    Another 5000 MW is being readied for tender.

    Last month, NTPC’s board approved the transfer of 15 renewable energy assets worth Rs 1,365 crore as of March 2022, 1% of NTPC’s net worth, to NTPC Green Energy. The board also announced the transfer of NTPC Renewable Energy, a wholly owned subsidiary, to NTPC Green Energy.

    NTPC is also working on energy storage and green hydrogen.

    Singh said the company has begun discussion with Nuclear Power Corp of India for setting up a 1,400 MW green field nuclear project in Madhya Pradesh through a joint venture.

    The company has announced it will not set up new coal-based projects but is considering a few expansion projects at the existing pit-head plants.

    “Considering the changes happening across the globe, while giving utmost thrust to add renewable capacity, a need has been felt for adding some coal-based capacity as it will provide resilience to the sector for meeting the increasing demand,” he said. “In this direction, we have already finalised the tender for 2X660 MW capacity at Talcher (TTPS) as a replacement project.”


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    ( Originally published on Sep 01, 2022 )
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