NTPC to Transfer 15 Renewable Assets Worth ₹13.65 Billion to its Subsidiary

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NTPC has approved the transfer of 15 renewable energy assets to NTPC Green Energy, a wholly-owned subsidiary of NTPC, through a business transfer agreement.

Revenue from 15 renewable energy assets intended to be transferred is ₹9.17 billion (~$115.39 million) in FY 2022, which is 0.68% of NTPC’s total revenue of ₹1.35 trillion (~$16.98 billion) as of March 31, 2022.

The net worth of the 15 renewable energy assets is ₹13.65 billion (~$171.77 million) as of March 31, 2022, which is 1.01% of the net worth of NTPC, i.e., ₹1.35 trillion (~$16.98 billion).

The consideration for the transfer of the renewable energy assets has been set at ₹100.67 billion (~$1.26 billion) based on the book value as per the audited financials as of March 31, 2022, payable through a combination of cash, equity shares, and debt liability.

NTPC also decided to transfer 100% equity shareholding held in NTPC Renewable Energy, a wholly-owned subsidiary of NTPC, to NTPC Green Energy through a share purchase agreement. NTPC Renewable Energy’s proposed transfer revenue is ₹7.8 million (~$98,160) in FY 2022. The net worth of NTPC Renewable Energy is ₹7.28 billion (~$91.61 million) as of March 31, 2022, which is 0.52% of NTPC’s net worth.

The sale and transfer of assets are expected to be completed within 120 days.

Recently, NTPC Renewable Energy inked an agreement with Gujarat Alkalies and Chemicals (GACL) to meet its green energy and green hydrogen objectives. The agreement envisions collaboration on renewable energy, green methanol, and green ammonia and exploring opportunities to supply 100 MW of round-the-clock renewable power.

NTPC Renewable Energy also signed a memorandum of understanding (MoU) with the Rajasthan government to develop a 10 GW ultra mega renewable energy power park. The MoU marks another step toward achieving the renewable capacity addition targets of NTPC.

NTPC REL has won 4 GW renewable energy capacity by bidding for tenders that are being implemented. It is also developing an  Ultra Mega renewable energy power park of 4.75 GW capacity in the Rann of Kutch, Gujarat.