India’s largest energy conglomerate NTPC Ltd. is eyeing to raise 150 billion rupees ($2 billion) through initial public offerings in three units including its renewables business, and its joint venture, according to a company official familiar with the plans.
A person on the condition of anonymity said NTPC Renewable Energy Ltd. will sell its stake within a year. The last year bought–hydropower unit North Eastern Electric Power Corp. and its power trading arm–NTPC Vidyut Vyapar Nigam Ltd., may go for IPO in early 2024, the person said.
NTPC is also planning a stake-sale in NTPC-SAIL Power Co, which is a joint venture with Steel Authority of India (SAIL),” the official said.
He added that the NTPC Renewable Energy’s goal will be to attain a minimum of 10 GigaWatts of generation capacity by the time it is ready to list.
“The company is mulling to merge its 800-MW Koldam hydro-power project in Himachal Pradesh with the renewables arm,” the official added.
The New Delhi-based company will sell off NTPC-SAIL Power Co., a joint venture between NTPC and Steel Authority of India Ltd. so as to supply to the steelmaker’s mills and townships.
NTPC is working towards green energy as there is mounting pressure to reduce coal usage owing to an increase in global warming and coal’s harmful impact on the environment and human health.
India’s fossil fuel tycoons — Mukesh Ambani, Gautam Adani and Sajjan Jindal have understood the benefit of the shift to green energy.
Since the beginning of the fiscal year in April, NTPC has won bids for 2,765 megawatts of renewable energy projects, a 77 percent increase over the previous fiscal year.
The corporation, which relies on coal for about 90% of its power generation, announced earlier this year that it will assist in creating 60 gigawatts of renewable energy projects by 2032, nearly doubling its previous goal.