NTPC is in talks with the Central government’s strategic investment fund NIIF to set up an infrastructure investment trust (InvIT) as a joint venture.
The move will help the company to unlock the value of its renewable energy projects.
The sovereign fund is also expected to be a joint venture partner in the utility’s foray in the power distribution business where NTPC is bidding for privatisation of Union Territory discoms.
The plan is to put the entire one GW of operational renewable assets and the two GW of RE projects in the pipeline under the trust. This will help to raise capital for expansion of renewable capacity.
The company will also form a joint venture with NIIF to participate in privatisation of discoms business going ahead.
NTPC plans to generate 25 percent 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.
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.
NIIF manages over USD 4.3 billion of equity capital commitments across its three funds -- Master Fund, Fund of Funds, and Strategic Opportunities Fund -- each with a distinct investment strategy.
It is a collaborative investment platform for international and Indian investors, anchored by the government of India, with investments across asset classes such as infrastructure, private equity and other diversified sectors in India.