NTPC plans IPO for renewables business in huge green push State-run NTPC Ltd., India’s largest power generator, aims to require its renewables unit public to assist fund a 2.5 trillion rupees ($34 billion) clean energy expansion, consistent with a corporation official with knowledge of the plans.
The New Delhi-based producer wants to list its NTPC Renewable Energy Ltd. unit within the next financial year , which begins in April 2022, the official said, requesting anonymity because the discussions are private.
It’s intended to enable a dramatic transformation over subsequent decade for a corporation that relies on coal to supply the overwhelming majority of its electricity. NTPC is getting to double generation capacity to 130 gigawatts by 2032 and slash the share of fossil fuels therein energy mix to about half from 92% currently.
NTPC didn’t immediately answer an email seeking comment sent outside usual office hours in India.
India’s biggest fossil-fuel tycoons and corporations decide to expand in renewable energy with investor pressure mounting on businesses to scale back carbon emissions and as Prime Minister Narendra Modi’s government debates aggressive climate targets. Mukesh Ambani, Asia’s richest man, last month said Reliance Industries Ltd. will invest about $10 billion over three years on sectors including solar, hydrogen and batteries.
NTPC plans to create large renewable energy parks and has secured land for a 5 gigawatt facility within the western state of Gujarat, the official said. it’s also signed an accord with state-run oil explorer Oil and gas Corp. to line up offshore wind generation plants, he said.
In addition to the renewables unit IPO, the corporate will seek to issue bonds and add loans from domestic and overseas banks to fund its clean energy plans, consistent with the official. NTPC also will consider selling some assets to boost funds.
The company has been raising the size of its ambition in renewables, recently flagging it had almost doubled its clean energy target and would help develop 60 gigawatts of capacity by 2032. A target to scale back the share of fossil fuels in its generation fleet to 50% compares to an earlier goal of 70%.
