NTPC could kickstart asset monetisation this quarter itself, say sources

• NTPC is consolidating all its RE assets under the new green energy company for monetisation as part of the government's National Monetisation Pipeline, said NTPC REL CEO
• NTPC has reached out to around 100 entities to seek Expression of Interest (EoI) for stake sale

New Delhi: Maharatna PSU NTPC Limited could kickstart the asset monetisation process within this quarter itself, said two separate sources aware of the matter on Tuesday. Speaking to PSU Watch, one of the two sources said that the quantum of stake sale will depend on the valuation of NTPC's newly-instituted green arm, NTPC Green Energy Limited, and the amount that the company wants to raise. "Discussions in this matter are on but the company is yet to decide how much stake will it offload," said the source.

Earlier in the day, NTPC Renewable Energy Ltd's (NREL) Chief Executive Officer (CEO) Mohit Bhargava told ET Now in an interview that NTPC is consolidating all its RE assets under the new green energy company, NTPC Green Energy Limited, for monetisation as part of the government's National Monetisation Pipeline (NMP).

NTPC plans to raise Rs 5,000 cr through asset monetisation: Report

A report published by The Economic Times has pegged the figure that NTPC plans to raise by selling stake in its green arm at Rs 5,000 crore. In a regulatory filing to the stock exchanges last week, NTPC had informed the bourses about transferring RE assets totalling about 2.5 GW to NTPC Green Energy Ltd. The assets have a book value of around Rs 10,000 crore. In addition, NTPC's 100 percent stake in NTPC Renewable Energy Ltd is also being transferred to NTPC Green Energy.

"So what we are trying to do is that we are consolidating all our RE assets under our new green energy company, NTPC Green Energy Limited… So, NTPC Green Energy will be the large green holding company with some assets on its books and some new greenfield assets coming in through NTPCREL. In the next 4-5 months, we are planning to monetise a part of this," said Bhargava in the interview. He added that NTPC will retain the ownership of this entity post asset monetisation.

NTPC has reached out to 100 entities, process in EoI stage

Bhargava also said that NTPC has reached out to around 100 entities to seek Expression of Interest (EoI) for stake sale. "Mails have been sent to large global sovereign funds, investors, as well as Indian entities. Close to 100 entities have been contacted. We are at the EoI stage," the NTPC Renewable Energy Ltd CEO said.

NTPC targets 12 GW RE portfolio by FY25

On being asked about NTPC's plans in the renewable energy sector, Bhargava said, "What we plan to do over the next 10 years is create a renewables portfolio which is almost as large in size as the coal-based one. The target is to set up 60 GW of RE capacity by 2032. For the shorter term, we plan to put in place 10-12 GW by FY25. And most of it is in the pipeline. We have around 2 GW which is operational, 4 GW which is under construction and 5 GW for which tenders are out."

"In terms of capex, that would roughly translate to around USD 5 billion by FY25 and another USD 25 billion by 2032. This includes renewables, meaning wind, solar, hybrid, storage, green hydrogen and green ammonia," said Bhargava.

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