New Delhi: The Cabinet has granted an exemption to state-run NTPC Limited from the guidelines of delegation of power to Maharatna CPSEs for making an investment beyond the prescribed limit in NTPC Green Energy Limited (NGEL). An official statement released on Friday said, “The Cabinet Committee on Economic Affairs, chaired by the Hon’ble Prime Minister Shri Narendra Modi, has granted an exemption to NTPC Limited from the extant guidelines of delegation of power to Maharatna CPSEs for making an investment in NTPC Green Energy Limited (NGEL), a Subsidiary Company of NTPC Ltd.
The CCEA has also exempted NGEL’s investment in NTPC Renewable Energy Limited (NREL) and its other JVs/subsidiaries subject to a ceiling of 15 percent of its net worth beyond the monetary ceiling of Rs 5,000 crore to Rs 7,500 crore, the statement added.
NGEL aims to be the flag bearer of NTPC’s renewable energy journey and presently has 15 RE assets of 2,861 MW which are operational or are nearing Commercial Operation Date (COD). “Through its subsidiary NREL (NTPC Renewable Energy Limited), NGEL is set to expand its RE portfolio by participating in competitive bidding and multiple emerging opportunities in the green energy business. The exemption given to NTPC will aid in improving India’s global image as a green economy. It will decrease India’s dependency on conventional sources of energy by diversifying India’s energy generation and will also decrease the country’s coal import bills. Further, it will also help in ensuring 24x7 power supply to each and every corner of the country,” said the government.
The Renewable Energy project will also generate direct and indirect employment opportunities for the local people at the construction stage as well as during operation and maintenance stage.
In line with the commitments announced at the COP-26, India is working towards a low-carbon emission path while meeting its development goals. The country is aiming to reach 500 GW of non-fossil energy capacity by 2030. NTPC, on its part, aims to add 60 GW of Renewable Energy capacity by 2032 which will help India in achieving the aforesaid target and move towards the larger aim of having ‘Net Zero’ emissions by 2070.
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