The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi on July 16 permitted state-run NTPC Ltd to invest up to Rs 20,000 crore on renewable energy projects, increasing the prescribed limit from the current Rs 7,500 crore.
Senior NTPC officials told Moneycontrol that the increased investment limit approved by the CCEA will help the NTPC Group in its short-term goal of having a renewable energy capacity of 19 GW by FY27, which will require at least Rs 1 lakh crore in investments. The Group has an operational renewable capacity of 6 GW.
The Group's long-term goal is to have a renewable capacity of 60 GW by FY32 which would need investments worth at least Rs 5 lakh crore. Renewable energy projects are executed by NTPC Ltd's listed subsidiary NTPC Green Energy Ltd (NGEL), which in turn will invest in NTPC Renewable Energy Ltd (NREL) and its other joint ventures and subsidiaries.
The official further said that the relaxed investment norms are purely for the Group's renewable energy projects and not its nuclear energy plans - NTPC Parmanu Urja Nigam Ltd (NPUNL).
Also read: Nuclear Power: How NTPC may steal a march over its competitors.
"The enhanced delegation given to NTPC and NGEL will facilitate accelerated development of renewable projects in the country. The move will also play a vital role in strengthening power infrastructure and ensuring investment in providing reliable, round-the-clock electricity access across the nation," the government said in a statement on July 16.
On July 16, NTPC Green shares closed trading nearly 2% higher at Rs 112.2 apiece.
The country is aiming to reach 500 GW of non-fossil energy capacity by 2030. As the country's largest state-run power generating company, NTPC, aims to add 60 GW of renewable energy capacity by 2032 contributing to the country's overall clean energy goals.
NGEL is the flag-bearer listed subsidiary of NTPC Group for renewable energy capacity addition through organic and inorganic growth. The organic growth is proposed to be done primarily through NGEL’s wholly owned subsidiary NREL. NGEL has also formed curated partnerships with various state governments and CPSUs for RE project development. NGEL has a portfolio of 32 GW RE capacity including 6 GW Operational capacity, ~17 GW Contracted/ Awarded capacity and Pipeline of 9 GW.
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