Power Company Incorporates New Subsidiary In 50:50 Ratio With New & Renewable Energy Development Corporation of Andhra Pradesh Ltd
The company has a market cap of Rs 93,000 crore with a PE of 270x, an ROE of 6 per cent and an ROCE of 8 per cent.
NTPC Green Energy Limited (NGEL) announced the incorporation of "AP NGEL HARIT AMRIT LIMITED" on February 6, 2025. This new entity is a 50:50 joint venture between NGEL, a subsidiary of NTPC Limited, and the New & Renewable Energy Development Corporation of Andhra Pradesh Limited, a Government of Andhra Pradesh undertaking. The company is incorporated in India and will operate within the renewable energy sector.
The primary objective of AP NGEL HARIT AMRIT LIMITED is to explore and develop a range of renewable energy projects. This includes solar, wind, and hybrid projects, with or without energy storage, targeting a capacity of up to 25 GW. Furthermore, the company aims to produce green hydrogen (0.5 MMTPA) and green derivatives like ammonia and methanol. Development of pump hydro projects (up to 10 GW) is also planned. NGEL has subscribed to 50,000 equity shares at Rs 10 each for a 50 per cent stake in the joint venture, with the necessary approvals from the Ministry of Power, DIPAM, and NITI Aayog already secured. The consideration for the shares was in cash.
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About the Company
NTPC Green Energy Limited (NGEL), a subsidiary of NTPC Limited, is a leading renewable energy company in India. Incorporated in 2022, NGEL is dedicated to developing, constructing, and operating solar and wind energy projects across the country. With a strong focus on sustainable energy solutions, NGEL aims to contribute significantly to India's renewable energy goals. By leveraging its parent company's expertise and resources, NGEL is well-positioned to become a major player in the renewable energy sector.
NTPC Green Energy Limited has been actively contributing to the nation's renewable energy goals. The successful commissioning of the first part capacity of the 105 MW Shajapur Solar Project in Madhya Pradesh on November 29, 2024, has propelled the NTPC group's total installed and commercial capacity to 76,530.68 MW. Furthermore, the strategic partnership between NTPC Green Energy Limited and Chhattisgarh State Power Generation Company Limited aims to develop up to 2,000 MW of renewable energy projects, including innovative floating solar solutions. This collaboration reinforces the commitment of both organizations to sustainable energy practices and a greener future.
The company has a market cap of Rs 93,000 crore with a PE of 270x, an ROE of 6 per cent and an ROCE of 8 per cent. Investors should keep an eye on this power generation stock.
Disclaimer: The article is for informational purposes only and not investment advice.