Tatsat Chronicle Magazine

NTPC Floats New Corporate Entity For Its Renewable Energy Business

March 1, 2023
Every Transition Renewable energy_NTPC Green

Under the aegis of the National Monetisation Pipeline of Govt. of India, NTPC completed the closing of the transactions in relation to consolidating its renewable energy (RE) portfolio under one umbrella entity called NTPC Green Energy Limited (NGE), on February 28. This is a transfer of RE assets and entities owned by NTPC to NGEL, its wholly-owned subsidiary, incorporated on April 07, 2022.

The transactions comprised of transfer of 15 RE assets, through a Business Transfer Agreement (BTA), and the transfer of 100% 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 GW RE capacity target by FY32.

The key highlights of the deal are:

  • NTPC Limited has completed the consolidation of its Renewable Energy RE portfolio under a new entity called NTPC Green Energy Limited (NGEL)
  • The consolidation involved the transfer of 15 RE assets through a Business Transfer Agreement (BTA)
  • The consolidation is part of the corporate business plan of the group to achieve the target of 60 GW RE capacity by FY32
  • The National Monetization Pipeline of the Government of India has facilitated this consolidation as a means to monetise and unlock the value of the country’s asset