The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has granted an exemption to NTPC (National Thermal Power Corporation) 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 also exempted NGEL’s investment in NTPC Renewable Energy Limited (NREL) and its other JVs/subsidiaries subject to a ceiling of 15 per cent of its net worth beyond the monetary ceiling of Rs 5,000 crore to Rs 7,500 crore, towards achieving a target of 60 GW Renewable Energy (RE) Capacity by NTPC Limited.
In line with its commitment in 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. As a Central Public Sector Enterprise and the leading Power Utility of the Country. NTPC, through this investment in the RE sector, aims to add 60 GW of Renewable Energy Capacity by 2032, which will help the country achieve the aforementioned target and move towards the larger aim of having ‘Net Zero’ emissions by 2070.
The enhanced target is in line with the Government’s “Panchamrit”, recently announced at COP 26 Summit as India’s contribution to climate action towards ‘Net Zero’.
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/nearing Commercial Operation Date (COD), and through its subsidiary NREL (NTPC Renewable Energy Limited) 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 also decrease India’s dependency on conventional energy sources by diversifying India’s energy generation and decreasing the country’s coal import bills. Further, it will also help ensure a 24*7 power supply to every corner of the country.
The Renewable Energy project will also generate direct and indirect employment opportunities for the local people at the construction stage as well as during O&M Stage.