Increasing NGEL capacity to 19 GW a top priority, says NTPC CMD

New Delhi: Increasing the capacity of NTPC Green Energy Ltd to 19 GW is among the key priorities for its parent company NTPC, its Chairman and Managing Director (CMD) Gurdeep Singh said on Tuesday.

NTPC Green Energy Ltd (NGEL), the renewable energy arm of power giant NTPC, launched its Rs 10,000 crore Initial Public Offering (IPO) on Tuesday, with a price band of Rs 102-108 per share.

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The CMD also said the price band was moderated after detailed consultation, taking into account overall market sentiment.

Replying to a question related to his priorities for NGEL, Singh said the company's capacity will be increased to 19 gigawatt (GW) by March 2027.

NGEL's operational renewable energy portfolio includes 3,220 megawatt (MW) of solar project and 100 MW of wind projects across six states as of September 30, 2024.

For addition of new capacities "we will need Rs 1 lakh crore," Singh said in an interaction with media persons.

The capacity will be increased in a phased manner. In the current fiscal, 6 GW will be made operational and 11 GW will be achieved in FY 2025-26 and by FY 2026-27, the entire 19 GW will be made operational.

He further said there is no issue related to availability of land for the planned capacity, besides Power Purchase Agreements (PPAs) have already been signed and EPC has been done.

The new projects will come up in states like Gujarat, Rajasthan, Maharashtra, Chhattisgarh, Andhra Pradesh, Telangana and Uttar Pradesh.

For solar, PPAs have been signed at a tariff of Rs 2.6 per unit and it will be in the range of Rs 3.24-3.6 per unit for wind.

The IPO of NGEL got subscribed 33 percent on the first day of share sale on Tuesday.

The Rs 10,000-crore initial share sale is entirely a fresh issuance of equity shares with no Offer For Sale (OFS) component.

The issue, with a price band of Rs 102-108 per share. The initial share sale for public subscription will conclude on November 22.

Proceeds from the IPO to the tune of Rs 7,500 crore will be used to repay or prepay part or all of its subsidiary NTPC Renewable Energy Ltd's (NREL) outstanding loans and a portion will be utilised for general corporate purposes.

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