State-run NTPC Green Energy Ltd. (NGEL) announced on Tuesday that it has signed an agreement with the government of Maharashtra for the development of green hydrogen and its derivatives such as green ammonia and green methanol of up to 1 million tonne capacity per annum.
“The MoU (memorandum of understanding) has been signed as part of the government of Maharashtra’s green investment plan for the next five years. The agreement envisages a potential investment of approximately ₹80,000 crore,” said an official statement from the Union ministry of power.
As per the statement, the agreement also includes the creation of pumped storage projects of 2 gigawatts (GW) and the development of renewable energy projects with or without storage up to 5 GW in the state.
The agreement was signed between NGEL chief executive officer Mohit Bhargava and deputy energy secretary of the government of Maharashtra, Narayan Karad.
The energy provider also stated that it aims to build renewable energy capacity of 60 GW by 2032. NTPC’s recent diversification into clean energy projects comes on the back of India’s efforts towards having a less carbon intensive economic development.
NGEL is a wholly-owned subsidiary of NTPC with an operational capacity of over 3.4 GW and 26 GW in pipeline including 7 GW under implementation.
NTPC had earlier reported a 10.2% quarter-on-quarter rise in its net consolidated profit to ₹5,209 crore during the third quarter of FY 23-24. The company's net profit had also increased by 7% tear-on-year from ₹4,854.36 crore in the year-ago period.
Mint had earlier reported that the interim budget, set to be presented on 1 February, may include revisions on taxes and duties on battery energy storage systems and green hydrogen supply chain components, with the move expected to help give a boost to the growth of these sectors.
NTPC shares closed at ₹315.45 on the BSE, down by 2.83% from yesterday.
