NTPC's renewable arm signs first green term loan of Rs 500 cr with BoI

The deal is at a competitive rate with a tenure of 15 years, for its 470 Mw solar projects in Rajasthan and 200 Mw in Gujarat

NTPC Renewable Energy ltd (REL) a fully-owned subsidiary of state-owned power generator NTPC, has signed its first green term loan agreement for Rs 500 crore.

The loan agreement is at a competitive rate with a tenure of 15 years with Bank of India on September 29, 2021 for its 470 Mw solar projects in Rajasthan and 200 Mw in Gujarat, the company said in a statement.

NTPC-REL currently has 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.

NTPC set up a wholly-owned subsidiary for its renewable energy projects in October 2020. Gurdeep Singh, chairman and managing director, NTPC, recently said they will list the entity soon.

“We should not focus on one way of raising funds. We want to soon go public for raising funds,” he had said, adding that 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. NTPC-REL has received the approval of the nodal ministry of new and renewable energy (MNRE), said a company's statement.