Centre allows NTPC to invest over 30% of its networth in NTPC Green Energy
The central government on Friday allowed state-owned power giant NTPC to invest more than the ceiling of 30 per cent of its networth in its subsidiary NTPC Green Energy Ltd (NGEL).
NTPC's net worth stood at Rs 1.28 lakh crore, as per its annual report for the financial year 2021-22.
This assumes significance given the NTPC's ambitious target of 60 GW of renewable energy by 2032. Presently, the maharatna central public sector undertakings require approval of the Union Cabinet to invest an amount more than 30 per cent of its net worth.
"Cabinet approves exemption to NTPC Ltd from the extant guidelines of delegation of power to Maharatna CPSEs for making an investment beyond the prescribed limit in NTPC Green Energy Ltd," an official statement said.
It has also exempted NGEL's investment in NTPC Renewable Energy Ltd (NREL) and its other JVs/subsidiaries (joint ventures), 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 cror