Cabinet approves exemption to NTPC from extant guidelines of delegation of power to Maharatna CPSEs

The Cabinet Committee on Economic Affairs (CCEA) chaired by the Indian prime minister Mr Narendra Modi has granted exemption to NTPC Limited from the extant guidelines of delegation of power to Maharatna Central Public Sector Enterprises (CPSEs) for making investment in NTPC Green Energy Limited (NGEL). The CCEA also exempted NGEL’s investment in NTPC Renewable Energy Limited (NREL) and its other joint ventures or subsidiaries subject to a ceiling of 15 per cent of its net worth beyond the monetary ceiling of Rs 50 billion to Rs 75 billion towards achieving a target of 60 GW renewable energy capacity by NTPC Limited.

NGEL aims to be the flag bearer of NTPC’s renewable energy journey and presently has 15 renewable energy assets of 2,861 MW which are operational/nearing commercial operation date (COD) and through its subsidiary NTPC Renewable Energy Limited (NREL) is set to expand its renewable energy 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.

Recently, under the aegis of the National Monetisation Pipeline of Government of India, NTPC Limited completed the closing of the transactions in relation to consolidating its renewable energy portfolio under one umbrella entity i.e NTPC Green Energy Limited on February 28, 2023. This is a transfer of renewable assets or entities owned by NTPC to NGEL, its wholly-owned subsidiary, incorporated on April 07, 2022.