Thirteen firms, including ArcelorMittal, Petronas, Brookfield, Canada Pension Plan Investment Board, and India’s state-backed National Investment & Infrastructure Fund, have evinced interest to pick up a minority stake in state-run NTPC’s green energy subsidiary.
NTPC Green Energy, a wholly-owned subsidiary of the country’s largest power generator, is slated to have installed renewable capacity of 35 gigawatt (GW) by 2027, up from 2.5 GW at present. Its renewable power portfolio includes wind, solar and hydro projects.
“We sought expressions of interest from strategic investors around two months ago. A total of 13 companies including patient capital funds like Canadian pension fund have shown interest. The deal is expected to be firmed up in the next two months,” an NTPC official said.
The official, however, said the state-run power producer was yet to take a final call on the percentage of equity to be divested in its green energy arm.
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Sources said apart from private placement, NTPC is also planning to come out with an initial public offering (IPO) for NTPC Green Energy. The issue might hit the markets in the next fiscal. “We can dilute up to 26% stake in the company,” the source said.
Currently, NTPC has an additional 4 GW green energy capacity at various stages of implementation. The tendering process has also started for another 5 GW capacity. The company plans to have 60 GW renewable capacity by 2032.
A 2X700 MW nuclear power plant in Madhya Pradesh, in a joint venture with Nuclear Power Corporation of India (NPCIL), is also on the cards. “We have decided to enter into a JV with NPCIL. Initial discussions have happened. The site has been approved for the nuclear power plant,” the source said.
The company is also setting up a 50 MW solar plant in Sri Lanka.
Overall, NTPC targets to have 130 GW power generation capacity by 2032 from a little over 69.5 GW capacity now with an investment of $30 billion (around `2.4 trillion).
“We are investing around Rs 25-26,000 crore every year. So, the investment target is very much within reach,” the source said.
https://www.financialexpress.com/industry/arcelormittal-petronas-brookfield-among-13-in-the-fray-to-buy-ntpc-green-energy-stake/2652283/
