NTPC transfers renewable energy assets to NTPC Green Energy

NTPC Limited (NTPC) has completed the closing of the transactions in relation to consolidating its renewable energy (RE) portfolio under one umbrella entity, ie, NTPC Green Energy Limited (NGEL), on 28 February 2023. This is a transfer of RE assets/entities owned by NTPC to NGEL, its wholly-owned subsidiary, incorporated on 7 April 2022.

The transactions, carried out under the aegis of the National Monetisation Pipeline of the Government of India, comprised of transfer of 15 RE assets, through a business transfer agreement (BTA), and the transfer of 100 per cent equity shareholding of NTPC Renewable Energy Limited (NREL), a wholly-owned subsidiary of NTPC, through a share purchase agreement (SPA), executed on 8 July 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 GW RE capacity target by FY32.
NTPC Ltd, a Maharatna PSU, had in December 2022, announced plans to offload between 10 and 20 per cent stake in its green arm, NTPC Green Energy Ltd (NGEL), by March 2023 as several potential investors have shown interest in picking up stake. They added that the deal is likely to fetch NTPC between Rs3,000 and Rs5,000 crore. "The plan has been in the pipeline for nearly a year and it is very likely to be closed in this financial year itself," a report cited two sources as saying.
TPC Renewable Energy incorporated Green Valley Renewable Energy as a joint venture with Damodar Valley Corporation (DVC).
NTPC has identified renewable energy projects of 2,861 MW which are slated to be transferred to NGEL, along with NTPC RE Limited.
While stating that the stake sale process has garnered much interest from buyers, reports citing sources said that ArcelorMittal, Brookfield and Canada Pension Plan Investment Board are among over a dozen entities that have shown interest in picking up stake in NTPC Green Energy Ltd.
NTPC has plans to raise Rs10,000 crore to Rs15,000 crore from asset monetisation in the next three years.