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 per cent 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.