The Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister Shri Narendra Modi has approved for listing of IREDA - a CPSE under Ministry of New & Renewable Energy (MNRE) on the Stock Exchanges through an Initial Public Offer (IPO) by part sale of Government’s stake in it and to raise funds for IREDA through issue of fresh equity shares. Department of Investment and Public Asset Management (DIPAM) will drive the listing process.
This decision supersedes earlier CCEA decision taken in June, 2017 for allowing IREDA to issue 13.90 crore fresh equity shares of ₹ 10.00 each to the public on book building basis through IPO. The instant decision has been necessitated due to change in capital structure following infusion of capital to the tune of ₹ 1500 crore by the Government in March, 2022.
This will help unlocking Government’s investment and improve governance through greater market discipline and transparency.
Cabinet approved exemption to NTPC Limited from the extant guidelines of delegation of power to Maharatna CPSEs for making 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% 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.
This will add 60GW of Renewable Energy capacity by 2032, helping India move towards ‘Net Zero’ emissions by 2070. 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).
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 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 sources of energy by diversifying India’s energy generation and will also decrease the country’s coal import bills. Further, it will also help in ensuring 24*7 power supply to each and every corner of the country.
These decisions will generate direct and indirect employment opportunities to the local people at construction stage as well as during O&M Stage.