State-run power generation company NTPC proposes to set up a wholly-owned subsidiary to house its growing renewable energy portfolio so that more focus is brought into the business that holds the potential of being the next growth engine for the company.
The company, which had installed a generation capacity of close to 63,000 ME, proposes to have 32,000 ME of renewable energy capacity under its hold by 2032. It already has 5,000 MW of commissioned renewable energy projects in its fold under the developer-mode model.
The NTPC has secured a bid from NITI Aayog and Disinvestment department DIPAM for its new renewable energy subsidiary and proposes to carve out the new entity soon after taking the board’s approval and shareholders’ nod. The capital structure of the new subsidiary will be worked out later.
“...concurrence had been obtained from NITI Aayog, Government of India (GoI) and Department of Investment and Public Asset Management (DIPAM), Ministry of Finance (MoF), Government of India, for formation of a wholly-owned subsidiary for NTPC renewable energy business. The aforesaid wholly-owned subsidiary will be incorporated under the provisions of the Companies Act, 2013,”
NTPC informed the exchanges on Friday.
