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NTPC Green Signs 25 GW MoU with Rajasthan Govt

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Synopsis:

NTPC Green Energy Ltd plans a major renewable energy project in Rajasthan, aiming to develop 25 GW, enhancing its green energy footprint.

NTPC Green news today

NTPC Green Energy Ltd (NGEL), a subsidiary of NTPC Ltd, has embarked on an ambitious renewable energy project, signing a memorandum of understanding (MoU) with the Rajasthan government to develop 25 gigawatts (GW) of renewable energy projects. This significant step was announced during the Rising Rajasthan Investor Meet in Delhi.

NTPC LTD

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356.15-10.55 (-2.87 %)

Updated - 21 November 2024
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Details of the MoU

The agreement, integral to Rajasthan's renewable energy expansion, was formalised in the presence of senior officials and dignitaries, including the Chief Minister of Rajasthan. Shri K S Sundaram, Director (Projects) of NGEL, and Shri Alok, IAS, Additional Chief Secretary (Energy), were the signatories. This collaboration underscores a significant push towards increasing the state's renewable capacity.

Economic impact and IPO insights

Simultaneously, NTPC Green Energy has made strides in financial developments, having recently filed a draft red herring prospectus (DRHP) for its upcoming public listing. The IPO, expected to launch in early November, marks a critical phase for NGEL, positioning it for broader market engagement and investment.

Financial performance and market movement

For the April-June quarter, NTPC reported a net profit of ₹4,511 crore with revenues reaching ₹44,419 crore. Despite some scrutiny over the earnings performance of NGEL's green business—highlighted by an EBITDA of ₹1,740 crore on a capacity of 2.9 GW and capital investments totalling ₹19,900 crore—the company's stock reflected investor optimism. On the announcement day, shares of NGEL saw an uplift of 1.4% on the National Stock Exchange, closing at ₹443.20.

The partnership between NGEL and the Rajasthan government is set to influence the landscape of renewable energy in India significantly. With substantial capacity additions on the horizon, this initiative not only promotes sustainable energy but also positions NGEL for substantial growth and visibility in the green energy sector.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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