New Delhi, September 26
NTPC Green Energy Limited has entered into a joint venture agreement with Mahatma Phule Renewable Energy and Infrastructure Technology (MAHAPREIT) for the development of 10 gigawatt renewable energy projects.
The joint venture company will undertake the development of 10 GW of renewable energy parks and projects "in Maharashtra or in any other state of India", NTPC, the parent company of NTPC Green Energy said in a statement.
The joint venture agreement was signed by Rajiv Gupta, CEO (NGEL), and Bipin Shrimali, MD (MAHAPREIT) in Mumbai on Wednesday, the statement added.
Notably, NTPC Green Energy is set to launch its much-awaited Rs 10,000 crore initial public offering (IPO), as per the draft red herring prospectus submitted to markets regulator Securities and Exchange Board of India (SEBI). The entire portion is a fresh issue.
DRHP is a document that consists of the company's financial details, future prospects, and other key aspects regarding the business and is filed with the regulator to raise money essentially via the public issue of its shares.
The company proposes to utilise the net proceeds from the IPO towards investment in its wholly-owned subsidiary NTPC Renewable Energy Limited (NREL) for repayment or prepayment of certain outstanding borrowings; and general corporate purposes.
"The amount utilised for general corporate purposes shall not exceed 25 per cent of the Issue Proceeds," the DRHP read.
Formed on October 7, 2020, NTPC Renewable Energy Ltd is a wholly owned subsidiary of power utility company NTPC Limited.
NTPC Renewable Energy was formed to accelerate the renewable energy growth of the company and increase the green footprint across the country, offshores, and overseas.
At COP26 held in 2021, India committed to an ambitious five-part "Panchamrit" pledge. They included reaching 500 GW of non-fossil electricity capacity, generating half of all energy requirements from renewables, and reducing emissions by 1 billion tonnes by 2030.
India as a whole also aims to reduce the emissions intensity of GDP by 45 per cent. Finally, India commits to net-zero emissions by 2070. India meets a sizable portion of its energy needs through fossil fuels, and various renewable energy sources, are seen as an avenue to reduce the dependence on conventional sources of power.