Country’s largest power producer NTPC proposes to forge a joint venture with government’s strategic investment fund NIIF to set up an infrastructure investment trust (InvIT).
The proposed InvIT will help NTPC to monetise some of its operational renewable energy projects. Funds raised from such exercise would be used by the power producer to invest in additional renewable capacity.
As per initial plan, NTPC would put the entire 1 GW of operational renewable assets and the 2 GW of RE projects in the pipeline under the trust. This will help to raise capital for expansion of renewable capacity.
The power producer is also looking to expand the scope of its partnership with NIIF to foray in the power distribution business where it is bidding for privatisation of Union Territory discoms.
NTPC plans to generate 25 per cent of its power capacity from renewable sources by 2030, which will be equivalent of 32 GW of power capacity and require an investment of Rs 1.60 lakh crore.
InvIT route would be ideal to unlock the value of existing assets for making future investments in green projects.
With a total installed capacity of 62,110 MW, NTPC Group has 70 power stations comprising 24 coal-based units, seven combined cycle gas/liquid fuel stations, one hydro, 13 renewables, along with 25 subsidiary and joint venture entities.