State-run NTPC has plans to list its subsidiary, NTPC Renewable Energy, in 2022-23. The funds are being raised to achieve the company’s ambitious target of 60 gw of installed renewable energy capacity by 2032. The proposed capacity target will entail a total investment of Rs 2.5 lakh crore, according to an executive of the country’s largest thermal power producer, who did not wish to be named. 

The executive, however, did not disclose the quantum of money to be raised through an initial public offer (IPO) of NTPC Renewable Energy but said that the equity component of the company would be around Rs 50,000 crore. The rest of the requirement would be met through long-term loans, debentures, bonds and other such modes, he added. 

Last year in October, NTPC had incorporated a wholly-owned subsidiary for its renewable energy business, NTPC Renewable Energy. Earlier this week, NTPC had indicated its intention to list NTPC Renewable Energy.

Participating in a virtual summit, NTPC Chairman and Managing Director Gurdeep Singh had said: “We should not focus on one way of raising funds. We want to go to public soon for raising funds.” 

Mr Singh was talking about raising funds for NTPC’s ambitious renewable energy target and had stressed that the company would add 7 to 8 gw of renewable energy every year, which would not be an uphill task for it. 

The executive said that initially, NTPC Renewable Energy would begin by adding around 4,000 mw of clean energy capacity in a year, which would be scaled up to 7,000 to 8,000 mw eventually in ten years till 2032. 

Mr Singh had exuded confidence that NTPC would exceed its target of 60 gw of renewable energy by 2032.