National thermal power corporation limited
The Cabinet Committee on Economic Affairs headed by Prime Minister Narendra Modi has allowed the government company National Thermal Power Corporation Limited (NTPC) to invest up to Rs 20,000 crore. Its purpose is to develop 60 GW renewable energy capacity by 2032. Apart from this, the cabinet has also approved an investment of Rs 7,000 crore to Neveli Lignite Corporation India Limited (NLCIL). For this, it has been given special exemption from the current investment rules applicable to Navratna government companies.
What will increase in NTPC shares?
After the government’s announcement of 20 thousand crore rupees, the shares of NTPC and NTPC Green can be seen in the coming days. On July 16, the NTPC stock was trending at Rs 342.60 in the Sensex. At the same time, NTPC shares saw a rise of 0.13 percent in intraday. At the same time, NTPC Green shares were trending at Rs 112.05 and Intrade saw a rise of 1.91 percent.
About NTPC’s investment
This proposed investment will be made through NTPC’s subsidiary NTPC Green Energy Limited (NGEL). After this, this amount will be invested in NGEL, NTPC Renewable Energy Limited (NREL) and its other subsidiaries. Earlier its limit was Rs 7,500 crore, which has now been increased to Rs 20,000 crore.
According to the government, NTPC will get this additional amount to promote renewable energy projects in the country and will help in strengthening the power structure. Due to this, people will continue to get reliable and continuously electricity to people across the country.
The government believes that investment in renewable energy projects will provide direct and indirect employment to the local people. Also, entrepreneurship will also be boosted in the country and new employment opportunities will be created, which will lead to social and economic development.
About NLCIL’s investment
The cabinet has also approved an investment of Rs 7,000 crore to NLCIL. This amount will be invested in NLC India Renewables Limited (NIRL). This investment is exempted from 30% net worth limit fixed for public sector companies, which will give more working and financial flexibility to NLCIL and NIRL.
With this investment, NLCIL aims to develop 10.11 GW by 2030 and 32 GW by 2047 to develop renewable energy capacity. Currently, NLCIL has seven renewable energy projects, which have a total established capacity of 2 GW. Some of these projects are on and some are about to start. After the approval of the cabinet, all these projects will be transferred to Nirl.