Home / Companies / News /  Brookfield, ArcelorMittal, CPPIB vie for stake in NTPC Green

NEW DELHI : Canada Pension Plan Investment Board (CPPIB), Brookfield, ArcelorMittal and 10 others have shown interest in buying a minority stake in NPTC Green Energy Ltd, a unit of India’s largest power producer, an official aware of the development said.

The state-run company has received expressions of interest (EoI) in the past couple of months.

“We have to raise around 2,000 crore. We are working on it, and the successful bidder will be selected in the next few months," the official said on the condition of anonymity.

NTPC may sell as much as 26% but has not decided on the final quantum of the stake sale.

Queries sent to NTPC, NTPC Green Energy, CPPIB, ArcelorMittal and Brookfield remained unanswered till press time.

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After the successful sale of a minority stake, the public sector company will also consider an initial public offering for NTPC Green.

The initial share sale is expected in the next financial year, the official said.

NTPC Green Energy was incorporated in April this year.

The total installed capacity of parent NTPC is 69.464GW, and the company plans to reach 130GW by 2032, which would be largely non-fossil fuel, including renewable and nuclear. Getting to the target of 130GW would require an estimated investment of $30 billion.

Currently, NTPC has 2.4GW of commissioned renewable capacity with 3.9GW under implementation and execution.

Last month, NTPC enhanced its solar footprint by commissioning the 56MW Kawas Solar PV Project at NTPC Kawas, Gujarat.

NTPC is lowering its carbon footprint by reducing greenhouse gas emissions by installing renewable energy projects in its existing stations and putting up greenfield renewable projects. The company has planned 262MW floating solar plants over 1,300 acres of its reservoir area by installing 950,000 PV modules at its various stations, out of which 242MW has been commissioned. This includes the country’s largest floating solar of 100MW at Ramagundam in Telangana, 92MW at Kayamkulam in Kerala, and 25MW each at Simhadri in Andhra Pradesh and Kawas in Gujarat.

It has also collaborated with NITI Aayog to achieve its net zero targets. The NTPC Group plans to achieve 60GW of renewable energy by 2032. NTPC has 2.3GW of commissioned renewable capacity with 3.9GW under implementation and execution.

NTPC also has 4.9GW of renewable energy capacity under tendering process, which will further bolster the green energy portfolio of India’s largest power producer.

It also has plans to enter the green hydrogen space. NTPC recently announced that its Kawas Gas blending project would blend hydrogen with piped natural gas for domestic usage.

Further, the company also has expansion plans abroad. The official also said that it is also likely to develop a solar project of 50MW in Sri Lanka which would entail an investment of around 200 crore.

Recently, the state-run company invited the participation of bidders to set up 1,150MW Solar PV projects in Cuba. NTPC, a corporate partner of the International Solar Alliance (ISA), has been chosen as the preferred partner for implementing solar PV parks in the Caribbean island.

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ABOUT THE AUTHOR

Rituraj Baruah

Rituraj Baruah is a senior correspondent at Mint, reporting on housing, urban affairs, small businesses and energy. He has reported on diverse sectors over the last six years including, commodities and stocks market, insolvency and real estate. He has previous stints at Cogencis Information Services, Indo-Asian News Service (IANS) and Inc42.
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