NTPC chalks out Rs 15,000 crore divestment plan, to list arms NTPC REL, NEEPCO, NVVNL

State-run power giant NTPC has drawn a Rs 15,000 crore divestment plan which includes listing of its arms NTPC Renewable Energy, North Eastern Electric Power Corporation and NTPC Vidyut Vyapar Nigam, a source said.

The source stated that besides listing of the three firms, the plan to meet its divestment target of Rs 1,5000 crore also includes sale of its stake in NTPC-SAIL Power Company Ltd (NSPCL), which is expected this fiscal year.

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The NSPCL is a joint venture company of NTPC and SAIL (50:50 equity) was incorporated on February 8, 1999. It was formed to own and operate captive power plants for SAIL's steel manufacturing facilities located at Durgapur, Rourkela and Bhilai.

According to the source, the Rs 15,000 crore divestment plan is as per agreed targets of performance set by the company with the Ministry of Power which includes listing of NTPC Renewable Energy Ltd (NTPC REL), North Eastern Electric Power Corporation Ltd (NEEPCO) and NTPC Vidyut Vyapar Nigam Ltd (NVVNL) by March 2024.

The source said that the listing of NTPC REL is expected by October next year. NTPC REL, a 100 per cent subsidiary of NTPC Ltd, currently has a renewable project portfolio of 3,450 MW of which 820 MW projects are under construction and 2,630 MW projects have been won for which PPAs (power purchase agreements) are pending to be executed.

NTPC had incorporated NTPC REL with the Registrar of Companies, NCT of Delhi & Haryana on October 7, 2020, to undertake renewable energy business.

The listing of NTPC REL assumes significance in view of the ambitious plan of the company to have 60GW of renewable energy capacity by 2032. The RE installed capacity of the firm would be 45 per cent of the 130 GW envisaged by 2032.

Earlier, the company had planned to have a minimum of 32 gigawatt (GW) capacity through renewable energy (RE) sources constituting nearly 25 per cent of its overall power generation capacity by 2032.

The present installed capacity of NTPC Group is 66,900 MW (including 13,425 MW through JVs/Subsidiaries) comprising of 47 NTPC stations (23 coal-based stations, 7 gas-based stations, 1 hydro station, 1 small hydro, 14 solar PV and 1 wind-based station) and 26 joint venture stations (9 coal based, 4 gas based, 8 hydro, 1 small hydro 2 wind and 2 solar PV).

The source said the equity component of the NTPC REL would be around Rs 50,000 crore and rest of the requirement would be met through long-term loans, debentures, bonds and other such modes.

The plan to have 60 GW RE capacity by 2032 would entail an investment of Rs 2.5 lakh crore.

The other arm which the company wants to list is NEEPCO, in which it had acquired 100 per cent equity stake held by the Government of India (GoI) on March 27, 2020, making it a wholly owned subsidiary.

NTPC had acquired NEEPCO for Rs 4,000 crore. Another arm which would be listed on the bourses is the NVVN, which is a wholly owned subsidiary of NTPC.

It was incorporated on November 1, 2002 for carrying out the business of purchase and sale of all forms of electrical power, both conventional and non-conventional, venturing into RE, E-Mobility and Hydrogen Mobility.