NTPC stock rises as board greenlights Rs 20,832 cr investment in two projects

NTPC has been in focus as the state-run company's green energy arm, NTPC Green Energy Ltd, recently filed its initial public offering (IPO) draft red herring prospectus (DRHP) to raise Rs 10,000 crore.

NTPC shares rose more than half a percent today (September 20) after the company announced board approval for a Rs 20,832 crore investment in two thermal power projects.

At its September 19 meeting, the board approved the investment for Sipat Super Thermal Power Project, Stage-III (1x800 MW), with an estimated cost of Rs 9,790.87 crore. Additionally, it cleared the investment for Darlipali Super Thermal Power Project, Stage-II (1x800 MW), with an estimated cost of Rs 11,130.98 crore.

In other news, NTPC’s Kayamkulam plant, also known as the Rajiv Gandhi Combined Cycle Power Project, is set to launch a pilot project for electricity generation using methanol. NTPC recently signed an MoU with Bharat Heavy Electricals (BHEL) to demonstrate methanol firing in the plant’s existing gas turbine system.

Methanol is a clean-burning fuel that produces fewer harmful emissions than traditional fuels. Phase 1 of the "test firing" will last a year. If successful, the use of methanol could help lower power generation costs, support a circular carbon economy, and reduce emissions.

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NTPC has been in focus as the state-run company's green energy arm, NTPC Green Energy Ltd, recently filed its initial public offering (IPO) draft red herring prospectus (DRHP) to raise Rs 10,000 crore.

The initial share sale will be an entirely fresh issue with no offer-for-sale (OFS) component. If a retail investor is holding an NTPC share, they stand to benefit as they can bid under the shareholder category of Rs 2 lakh as well, upping the maximum limit to Rs 4 lakh crore.

NTPC shares closed 2.3 percent higher at Rs 424 on NSE in the previous session. The stock has rallied 36 percent so far this year, outperforming Nifty's returns of 16 percent. In the past 12 months, the counter has risen 75 percent. In comparison, Nifty rose 27 percent during this period.

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