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Tag: NTPC Green Energy

  • Cabinet Clears INR 20,000 Cr Green Energy Push by NTPC

    With the goal of producing 60 GW of renewable energy capacity by 2032, the state-owned National Thermal Power Corporation Limited was given permission to invest INR 20,000 crore by the Cabinet Committee on Economic Affairs, which was chaired by Prime Minister Narendra Modi.

    Furthermore, the Cabinet granted a unique exemption from the current investment guidelines that apply to Navratna Central Public Sector Enterprises, allowing Neyveli Lignite Corp India Limited (NLCIL) to invest INR 7,000 crore.

    The subsidiary NTPC Green Energy Limited (NGEL) will receive the planned investment. After that, NGEL will invest in NTPC Renewable Energy Limited (NREL) and its other subsidiaries, going above the INR 7,500 crore previously authorised limit, which has now been raised to INR 20,000 crore.

    NTPC to Boost Renewable Projects in India

    The government claims that the extra money given to NTPC will support the growth of renewable energy projects in India and be essential to fortifying the nation’s electrical infrastructure, which will guarantee consistent, dependable access to electricity.

    It is anticipated that investments in renewable energy projects will create both direct and indirect job possibilities for the local population. According to the government, in addition to fostering employment and socioeconomic development, it will support entrepreneurship prospects in the nation.

    According to Home Minister Amit Shah, raising NTPC and NGEL’s investment restrictions in the sector to INR 20,000 crore will hasten the nation’s progress towards reaching its 2032 target of 60 GW of green energy production. 

    However, NLC India Ltd will be allowed to spend INR 7,000 crore in green energy thanks to a unique exemption, demonstrating India’s unwavering commitment to building a healthier earth and a greener Bharat, Shah added.

    India Aligning Itself with Paris Agreement

    Five years ahead of its Nationally Determined Contributions target under the Paris Agreement, India has accomplished a significant milestone by guaranteeing that 50% of its installed energy capacity comes from non-fossil fuel sources.

    The current goal is to reach net zero emissions by 2070 and raise non-fossil fuel generation capacity to 500 GW by 2030. Regarding the NLCIL decision, the government stated that it would allow the government-owned company to invest INR 7,000 crore in NIRL and allow NIRL to invest in a number of projects directly or through joint ventures without needing prior approval under the current power delegation.

    By reducing reliance on fossil fuels, lowering coal imports, and improving the dependability of the nation’s 24-hour power supply, the decision is anticipated to strengthen India’s status as a pioneer in green energy.

    NLCIL currently oversees seven renewable energy assets that are either in the process of going commercial or have a combined installed capacity of 2 GW. After this Cabinet clearance, these assets will be given to NIRL.

  • Sebi Approves NTPC Green Energy and Avanse Financial Services to List Their IPOs

    According to an update with the markets regulator on October 28, 2024, Sebi has given the go-ahead for NTPC Green Energy, the company’s renewable energy division, and Avanse Financial Services Ltd, an NBFC with an emphasis on education, to raise money through initial public offerings (IPOs).

    Through first share offerings, NTPC Green Energy and Avanse Financial Services hope to raise INR 10,000 crore and INR 3,500 crore, respectively. According to a media report, the two businesses who submitted their initial public offerings (IPO) documents to Sebi between July and September received their observations on October 22 and 23. In Sebi’s terminology, obtaining observations signifies that the public issue is now to be floated. According to the draft red herring prospectus (DRHP), NTPC Green Energy’s first share offering is a complete new issuance of equity shares without an offer-for-sale (OFS) component.

    How Companies Are Planning to Utilise the Amount?

    In addition to using a portion for general corporate purposes, INR 7,500 crore of the total revenues will be utilised to repay or retire all or a portion of the existing loans owed by its subsidiary NTPC Renewable Energy Ltd. (NREL). Spread throughout more than six states, NTPC Green Energy is a central public sector organisation known as “Maharatna” that specialises in renewable energy, including wind and solar generating assets.

    According to the DRHP, the proposed IPO by Avanse Financial Services includes a new offering of equity shares up to INR 1,000 crore and OFS up to INR 2,500 crore by the selling stockholders. The business, which is supported by Olive Vine Investment Ltd., a division of Warburg Pincus, a prominent private equity firm, plans to use the money to expand its capital base in order to meet future demands.

    Olive Vine Investment, Kedaara Capital Growth Fund III LLP, and International Finance Corporation (IFC) would all sell shares valued at INR 1,758 crore, INR 400 crore, and INR 342 crore, respectively, as part of the OFS. However, on October 23, VMS TMT withdrew its draft IPO documents. Early in October, the regulator got the company’s draft IPO paperwork.

    Avanse Financial Services

    The non-banking financial enterprise Avanse Financial Services, which focuses on education, intends to raise INR 3,500 crore to increase its capital base in order to fulfil its future capital needs. The second-biggest NBFC in India with an emphasis on education is Avanse Financial Services. Among Indian NBFCs with an emphasis on education, it also had the second-highest payouts in FY23 and the second-highest earnings in FY24.

    With products ranging from student education loans to expansion capital for educational institutions through education infrastructure loans, the organisation provides a full-stack education offering. For Indian professionals and students selected to study abroad or at domestic universities, it offers loans and other value-added services. Additionally, it offers private educational institutes in India finances backed by collateral.

    SEBI Approves IndiGo Ventures’ New Venture Capital Fund
    SEBI has approved IndiGo Ventures as an alternative investment fund, targeting pre-Series A and Series B investments in aviation transforming travel experiences.
    StartupTalkyNitin Konde