New Delhi, Aug 22 (IANS) State-run power generation company NTPC proposes to set up a wholly-owned subsidiary to house its growing renewable energy portfolio so that more focus is brought into the business that holds the potential of being the next growth engine for the company.
The company, which had installed a generation capacity of close to 63,000 ME, proposes to have 32,000 ME of renewable energy capacity under its hold by 2032. It already has 5,000 MW of commissioned renewable energy projects in its fold under the developer-mode model.
The NTPC has secured a bid from NITI Aayog and Disinvestment department DIPAM for its new renewable energy subsidiary and proposes to carve out the new entity soon after taking the board’s approval and shareholders’ nod. The capital structure of the new subsidiary will be worked out later.
“…concurrence had been obtained from NITI Aayog, Government of India (GoI) and Department of Investment and Public Asset Management (DIPAM), Ministry of Finance (MoF), Government of India, for formation of a wholly-owned subsidiary for NTPC renewable energy business. The aforesaid wholly-owned subsidiary will be incorporated under the provisions of the Companies Act, 2013,” NTPC informed the exchanges on Friday.
NTPC shares jumped 4.75 per cent to close at 105.95 at the close of trading hours on the BSE on Friday.
The new subsidiary will help the company to bring more focus on renewable operations and quickly achieve the target it set for expanding green capacity. Of the 32,000 MW renewable energy capacity, nearly 10,000 MW of solar capacity is proposed to be commissioned till 2022. The aim is to take up renewable capacity to 30 per cent of its total operations by 2032.
The company is also looking at expanding hydro operations and setting up 2,000 MW of nuclear capacity.
The NTPC Group has achieved more than 100 billion units (BUs) of cumulative generation in the current financial year, reinforcing the group’s commitment towards excellence in operations across its plants.
With a total installed capacity of 62.9 GW, the NTPC Group has 70 power stations, comprising 24 coal, 7 combined cycle gas/liquid fuel, 1 hydro, 13 renewables along with 25 subsidiary and JV power stations. The group has more than 20 GW of capacity under construction, including 5 GW of renewable energy projects.