On March 17, 2023, the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi granted an exemption to NTPC Limited from the extant guidelines of delegation of power to Maharatna CPSEs (Central Public Sector Enterprises) for making investments 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 (Joint Ventures)/subsidiaries subject to a ceiling of 15% 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.
Key Points:
i.NGEL presently has 15 renewable energy assets of 2,861 MW (Mega Watt) (which are operational or nearing commercial operation date) and it also intends to expand its RE portfolio through its subsidiary NREL.
ii.NTPC, through this investment in the RE sector, aims to add 60 GW (Giga Watt) of RE Capacity by 2032.
iii.The Renewable Energy project will also generate direct and indirect employment opportunities for the local people.
iv.India is aiming to reach 500 GW of non-fossil energy capacity by 2030 and Net Zero emissions by 2070.
Note – The exemption will decrease India’s dependency on conventional sources of energy and decrease coal import bills. It will also help in ensuring 24×7 power supply to all parts of the country.
Cabinet approves listing of IREDA on stock exchanges via IPO by Part-Sale Of Govt Stake
The CCEA also approved the listing of the Indian Renewable Energy Development Agency Ltd (IREDA), the CPSE under the Ministry of New & Renewable Energy (MNRE), on stock exchanges through an initial public offer (IPO) by the part sale of the government’s stake in the public sector entity.
- The listing process will be implemented by the Department of Investment and Public Asset Management (DIPAM).
Aim: To raise funds through the issue of fresh equity shares by the IREDA
Key Note:
This decision has replaced the previous decision made by the CCEA in June 2017 which had allowed the IREDA to issue 13.90 crore fresh equity shares of Rs 10 each to the public on a book-building basis through an IPO route.
- The reason for this change is due to the infusion of capital amounting to Rs 1,500 crore by the government in March 2022, which has altered the capital structure and made this new decision necessary.
Note – IREDA, the Mini-Ratna (Category-I) CPSE which is currently wholly owned by the Government of India is engaged in financing Renewable Energy (RE) and Energy Efficiency (EE) projects in India. It is registered as a Non-banking Financial Company (NBFC) with the Reserve Bank of India (RBI).
Recent Related News:
NTPC Limited (NTPC), India’s state-owned power company, has installed the nation’s first Air-Cooled Condenser (ACC) at its North Karanpura supercritical thermal plant in Jharkhand, which would aid in water conservation.
About Indian Renewable Energy Development Agency Ltd (IREDA):
Chairman & Managing Director– Pradip Kumar Das
Headquarters– New Delhi, Delhi
Establishment– 1987
