NTPC transfers 3,000 MW renewable energy assets to its subsidiary

Moving a step closer to its plan of monetising its renewable energy assets, NTPC Limited has completed the transfer of 15 such assets with a total capacity of nearly 3,000 megawatt (MW) to its newly created subsidiary NTPC Green Energy Limited (NGEL), the government said in a statement on March 1.

With the transfer now completed, the state-run power generator is planning to offload 10 to 20 percent stake in NGEL, a senior NTPC official said, requesting anonymity.

“Under the aegis of the National Monetisation Pipeline of the government of India, NTPC Limited completed the closing of the transactions in relation to consolidating its renewable energy (RE) portfolio under one umbrella entity – NGEL - on February 28. This is a transfer of RE assets/entities owned by NTPC to NGEL, its wholly owned subsidiary, incorporated on April 7, 2022,” read the statement.

“The transactions comprised transfer of 15 RE assets, through a Business Transfer Agreement (BTA), and the transfer of 100 percent equity shareholding of NTPC Renewable Energy Limited (NREL), a wholly owned subsidiary of NTPC, through a Share Purchase Agreement (SPA), executed on July 08, 2022. This scheme has been implemented as a part of the corporate business plan of the group to provide an impetus to its focus on achieving the 60 gigawatt (GW) RE capacity target by FY 2032,” it said.