New Delhi: In a significant development, NTPC Renewable Energy ltd (REL) a 100 per cent subsidiary of state-owned power generator NTPC, has signed its first green term loan agreement for Rs 500 crore at a very competitive rate with a tenor of 15 years with Bank of India for its 470 MW solar projects in Rajasthan and 200 MW in Gujarat, the company said in a statement.
NTPC-REL currently has a renewable project portfolio of 3,450 Mw, of which 820 Mw is under construction and 2,630 Mw projects have been won, for which power purchase agreements (PPAs) are yet to be executed. A green loan is a type of loan instrument that enables borrowers to finance projects that have an environmental impact.
NTPC had incorporated NTPC- Renewable Energy Ltd with the Registrar of Companies, NCT of Delhi and Haryana in October 2020, to undertake renewable energy business. It is also taking various steps to make its energy portfolio greener by adding significant capacities of renewable energy sources.
Gurdeep Singh, chairman and managing director, NTPC, said that they will list the entity soon. “We should not focus on one way of raising funds. We want to go public soon to raise funds,” he said.
The company would add 7-8 Gw renewable every year. Apart from solar and wind power projects, NTPC is also looking to invest in green hydrogen and green methanol–cleaner fuels that are manufactured at units powered by renewable energy.
NTPC-REL would construct what would be India’s largest single local solar power park of 4.75 Gw in Kutch. It has received the approval of the nodal ministry of new and renewable energy (MNRE), said the company in the statement.
