Centre grants NTPC exemption to invest beyond prescribed limit in NTPC Green Energy

The Cabinet Committee on Economic Affairs on Friday granted exemption to state- owned giant NTPC Limited to invest more than the prescribed limit in its green energy subsidiary, NTPC Green Energy Ltd (NGEL).

"The Cabinet Committee on Economic Affairs, chaired by the Hon’ble Prime Minister Shri Narendra Modi, has granted exemption to NTPC Limited from the extant guidelines of delegation of power to Maharatna CPSEs for making investment in NTPC Green Energy Limited (NGEL), a Subsidiary Company of NTPC Ltd.," CCEA said in a statement.

NTPC's net worth stood at Rs 1.28 lakh crore, as per its annual report for the financial year 2021-22.

Through this investment in RE sector, NTPC aims to add 60 GW of Renewable Energy Capacity by 2032 which will help the Country in achieving the aforesaid target and move towards larger aim of having 'Net Zero' emissions by 2070.

Presently, the Maharatna central public sector undertakings require approval of the Union Cabinet to invest an amount more than 30 percent of its net worth.

The enhanced target is in line with the Government’s “Panchamrit” recently announced at COP 26 Summit as India’s contribution to climate action towards ‘Net Zero’.

The Cabinet Committee also exempted NGEL’s investment in NTPC Renewable Energy Limited (NREL) and its other JVs/subsidiaries subject to a ceiling of 15 percent of its net worth beyond the monetary ceiling of Rs 5,000 crore to Rs. 7,500 crore, towards achieving a target of 60 GW Renewable Energy (RE) Capacity by NTPC Limited, the statement added.

In line with its commitment in COP 26, India is working towards low carbon emission path while meeting its development goals.  The country is aiming to reach 500 GW of non-fossil energy capacity by 2030.

NGEL presently has 15 green assets of 2,861 MW which are operational/nearing Commercial Operation Date (COD) and through its subsidiary NREL (NTPC Renewable Energy Limited) is set to expand its RE portfolio by participating in competitive bidding and multiple emerging opportunities in green energy business.

The exemption given to NTPC will aid in improving India’s global image as a green economy.  It will also decrease India’s dependency on conventional sources of energy by diversifying India’s energy generation and will also decrease the country’s coal import bills.

Further, it will also help in ensuring 24*7 power supply to each and every corner of the country, the statement said.

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