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					</table><p>NTPC Green Energy, a wholly-owned subsidiary of <a href="https://www.ntpc.co.in/" target="_blank" rel="noopener">NTPC</a>, has invited proposals from banks for a green term loan of up to ₹90 billion (~$1 billion) to repay debt obligations towards NTPC against the acquisition of 15 renewable assets.</p>
<p>NGEL intends to repay the outstanding liability of ₹82 billion (~$990 million) and further intends to raise additional funds of approximately ₹8 billion (~$97 million) to clear the balance capital expenditure payments of projects which are yet to achieve commercial operation date.</p>
<p>The last date for the banks to submit the proposals is March 6, 2023.</p>
<p>The minimum loan to be offered by the banks or financial institutions is ₹10 billion (~$121 million).</p>
<p>The tenor of the loan is 15 years or more with a moratorium of 6 months from the date of the first drawl.</p>
<p>NGEL will repay the loan in equal half-yearly installments.</p>
<p>The proposals will be evaluated based on the lowest quoted rate of interest, irrespective of any benchmark.</p>
<p>NGEL aims to bolster NTPC goals by helping the latter’s renewable operational capacity reach approximately 12 GW by 2025 on a consolidated basis and further scale up to achieve 60 GW capacity by 2032.</p>
<p>To support the company’s green targets, NTPC incorporated NGEL in April last year and <a href="https://mercomindia.com/ntpc-to-transfer-15-renewable-assets-worth/" target="_blank" rel="noopener">inked</a> a business transfer agreement with the latter to transfer 15 solar and wind projects. The projects have a combined capacity of 2.8 GW.</p>
<p>Of the 15 renewable projects, 13 projects with 2.2 GW capacity are fully operational and the remaining two projects totaling 600 MW have attained an operational capacity of 350 MW.</p>
<p>The net worth of the 15 renewable energy assets is ₹13.7 billion (~$171.8 million) as of March 31, 2022, which is 1% of the net worth of NTPC, i.e., ₹1.4 trillion (~$17 billion).</p>
<p>The consideration for the transfer of the renewable energy assets has been set at ₹100.7 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.</p>
<p>Earlier this month, NTPC <a href="https://mercomindia.com/ntpc-bids-raise-750-million-external-commercial-borrowing/" target="_blank" rel="noopener">invited</a> bids to raise external commercial borrowing in the form of Tokyo Overnight Average Rate-linked unsecured term loan in Japanese Yen (JPY) equivalent to $150 million (~₹12.4 billion) plus a greenshoe option of JPY equivalent to $600 million (~₹49.6 billion).</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/gourav-mishra/" class="vcard author" rel="author"><span class="fn">Gourav Mishra</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/WhatsApp-Image-2022-04-06-at-6.37.25-PM-1-1.jpeg" width="50" /></p>
<p><strong style="text-decoration: underline">Gourav,</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/gourav-mishra/" target="_blank" rel="noopener">More articles from Gourav.</a></p>
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<div class="authorboxn"><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/WhatsApp-Image-2022-04-06-at-6.37.25-PM-1-1.jpeg" width="89" height="102" /><a href="https://mercomindia.com/author/gourav-mishra/" target="_blank" rel="noopener">Gourav</a> is a staff reporter with Mercom India with over six years of experience in various roles with NewsX, The New Indian Express, IBTimes India, and U.S., Republic, and Analytics India Magazine. Gourav has a Master&#8217;s in journalism from Jain University, Bengaluru. <a href="https://mercomindia.com/author/gourav-mishra/" target="_blank" rel="noopener">More articles from Gourav Mishra</a></div>
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NTPC Subsidiary Invites Proposals for Green Term Loan of ₹90 Billion

<p>The Ministry of New and Renewable Energy (<a href="https://mnre.gov.in/" target="_blank" rel="noopener noreferrer">MNRE</a>) has announced the formation of a Foreign Direct Investment (FDI) cell to process the FDI proposals.</p>
<p>According to the FDI policy, a non-resident entity can invest in India, subject to the FDI policy except in those sectors or activities which are prohibited like defense, space, atomic energy.</p>
<p>The <a href="https://mercomindia.com/india-tweaks-fdi-policy/" target="_blank" rel="noopener noreferrer">revised policy</a> now says that any investment by an entity of a country that shares a land border with India or where the beneficial owner of investment is a citizen of any of those countries will need government approval. Earlier, only Bangladesh and Pakistan were under this category, which has now been expanded to all neighboring countries sharing the border with India. India shares land borders with seven neighboring countries of Pakistan, Bangladesh, China, Nepal, Myanmar, Bhutan, and Afghanistan. Now, the FDI proposals involving investments from these countries will be processed by the concerned administrative ministry or department.</p>
<p>The cell formed under the MNRE would consist of Amitesh Kumar Sinha, joint secretary (solar), and Ruchin Gupta, MNRE’s Director.</p>
<p>Recently, the <a href="https://commerce.gov.in/" target="_blank" rel="noopener noreferrer">Ministry of Commerce and Industry</a> in April 2020, revised its FDI policy to curb “opportunistic takeovers or acquisitions” of Indian companies amid the ongoing pandemic caused by the coronavirus.</p>
<p>In India, the majority of renewable expansion has been made possible with the help of FDI.</p>
<p>Earlier, Mercom <a href="https://mercomindia.com/renewable-industry-attracts-1-27-billion-fdi/" target="_blank" rel="noopener noreferrer">reported</a> that the foreign direct investments in India’s renewable sector stood at $1.27 billion (~₹96.96 billion) for the first nine months of the financial year (FY) 2019-20. The sector received $1.45 billion (~₹110.53 billion) in the entire FY 2018-19. If we look at the past few years, the sector has been witnessing a steady increase in the inflow of FDI. For instance, it increased from $783.57 million (~₹59.89 billion)in 2016-17 to $1.2 billion (~₹92.06 billion) in 2017-18 and then to $1.44 billion (~₹110.53 billion) in 2018-19.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/anjana/" class="vcard author" rel="author"><span class="fn">Anjana Parikh</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><p><img class="alignleft" src="https://mercomindia.com/wp-content/uploads/2019/06/Anjana2.png" width="112" height="121" />Anjana is a news editor at Mercom India. Before joining Mercom, she held roles of senior editor, district correspondent, and sub-editor for The Times of India, Biospectrum and The Sunday Guardian. Before that, she worked at the Deccan Herald and the Asianlite as chief sub-editor and news editor. She has also contributed to The Quint, Hindustan Times, The New Indian Express, Reader’s Digest (UK edition), IndiaSe (Singapore-based magazine) and Asiaville. Anjana holds a Master’s degree in Geography from North Bengal University, and a diploma in mass communication and journalism from Guru Ghasidas University, Bhopal.</p>
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FDI Cell Formed Under MNRE to Process Investment Proposals from Neighboring Countries

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