NTPC said that it has completed the transactions in relation to consolidating its renewable energy (RE) portfolio under one umbrella entity – NTPC Green Energy Ltd (NGEL).
In a media release, NTPC said that on February 28, 2023, the transfer of RE assets owned by NTPC to NGEL, its wholly-owned subsidiary incorporated on April 7, 2022, was completed.
The transfer was done under the aegis of the National Monetization Pipeline (NMP).
The transfer of 15 RE assets was effected through a business transfer agreement (BTA) dated July 8, 2022 and the transfer of 100 per equity shareholding of NTPC Renewable Energy Ltd (NREL), a wholly-owned subsidiary of NTPC, was effected through a share purchase agreement (SPA), also dated July 8, 2022.
This scheme has been implemented as a part of the corporate business plan of the group to provide an impetus to its focus on achieving the 60 GW RE capacity target by FY32.
According to a stock exchange filing by NTPC, the transfer of the 15 RE assets was done at a valuation of Rs.10,066.99 crore, which was based on the book value, as of March 31, 2022. The transfer of NTPC’s 100 per equity held in NREL to NGEL has a deal size of Rs.731.17 crore.
In summary, the 15 RE assets under discussion are being hived off from NTPC’s books to NGEL. Also 100 per cent equity of NTPC in NREL has been transferred to NGEL.
It is further learnt that the revenue from the 15 RE assets that have been transferred to NGEL was Rs.917.46 crore in FY22, which was 0.68 per cent of NTPC’s revenue of Rs.1,34,994.31 crore in FY22.
In FY22, NREL recorded revenue of Rs.0.78 crore. As of March 31, 2022, according to NREL’s annual report, the company had an RE portfolio of 4,200 mw of which 2,295 mw was under construction. NREL was also developing a 4,750-mw renewable energy park in the Rann of Kutch, Gujarat, with an estimated outlay of Rs.1,843 crore.
According to information available on NTPC’s official website (accessed on March 1, 2023), NTPC had commissioned 3,012 mw of RE capacity, through solar, wind and small hydropower projects. Besides, another 435 mw of RE projects (all solar) were under implementation.
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