Shares of NTPC Green Energy witnessed a notable surge of 4%, reaching their intraday high of ₹137.10 on the Bombay Stock Exchange (BSE) today. This rally came in response to the company’s announcement of signing a Memorandum of Understanding (MoU) with the Department of Industries, under the Government of Bihar.
The agreement aims to foster collaboration between NTPC Green Energy and the Bihar government to promote sustainable energy initiatives and drive industrial growth in the state. This development has sparked positive sentiment among investors, contributing to the upward movement in the company’s stock price during the trading session.
NTPC Green Energy Limited (NGEL), a wholly-owned subsidiary of NTPC, has officially entered into a Memorandum of Understanding (MoU) with the Department of Industries, under the Government of Bihar. This agreement was formalized during the ‘Bihar Business Connect 2024’ Global Investors’ Summit, which took place on December 20, 2024, in Patna, according to the company’s regulatory filing to the stock exchanges.
The MoU establishes a collaborative framework for making substantial investments in Bihar’s renewable energy sector. Under this partnership, NTPC Green Energy plans to develop a range of sustainable energy projects across the state. These initiatives will include the deployment of ground-mounted and floating solar power installations, the establishment of battery energy storage systems to enhance energy efficiency, and the development of green hydrogen mobility solutions aimed at promoting cleaner transportation alternatives. This strategic collaboration is expected to play a vital role in advancing Bihar’s green energy ambitions and contributing to India’s broader sustainability goals.
The Government of Bihar has committed to providing comprehensive support for the successful execution of the planned renewable energy projects. As part of this commitment, the state government will assist NTPC Green Energy Limited (NGEL) by facilitating the acquisition of all necessary permissions, registrations, approvals, and clearances required for the projects. This support will involve coordination with relevant departments, agencies, and regulatory authorities to ensure a smooth and efficient approval process. The government’s involvement is aimed at expediting project implementation and fostering a favorable environment for investment and development within the state’s renewable energy sector.
The Government of Bihar has pledged to extend full support to ensure the smooth execution of the proposed renewable energy projects by NTPC Green Energy Limited (NGEL). This support will include facilitating the acquisition of all essential permissions, registrations, approvals, and clearances from the relevant departments, regulatory agencies, and other concerned authorities. The objective is to streamline administrative processes and remove potential bureaucratic hurdles, thereby enabling the timely implementation of the projects.
As of now, NTPC Green Energy has not disclosed any additional details regarding the specifics of the agreement in its communication to the stock exchanges. Further information about the scope, financial commitments, or timelines related to the collaboration may be shared in future announcements.
NTPC Green Energy Limited (NGEL), a subsidiary of NTPC, holds the distinction of being the largest renewable energy-focused public sector enterprise in India, excluding hydroelectric power, based on its operating capacity as of September 2024. Additionally, the company has emerged as a leading contributor to renewable power generation during the financial year 2023-24 (FY24). With a strong presence in the green energy sector, NTPC Green Energy continues to expand its portfolio, focusing on solar, wind, battery storage, and green hydrogen initiatives, aligning with India’s clean energy transition goals.
NTPC Green Energy Limited (NGEL) boasts a diverse renewable energy portfolio that includes both solar and wind power assets. The company has established its presence across multiple locations in more than six states across India. This geographical diversification plays a crucial role in reducing the risks associated with location-specific generation variability, ensuring more consistent and reliable energy production across different regions.
As of September 2024, NTPC Green Energy’s total operational capacity stood at 3,220 megawatts (MW) from its solar power projects and an additional 100 MW from its wind power projects. This robust capacity highlights the company’s commitment to expanding its renewable energy footprint and supporting India’s transition toward sustainable energy solutions.
In terms of financial performance, NTPC Green Energy has demonstrated impressive growth. The company’s revenue from operations has increased at a compound annual growth rate (CAGR) of 46.82%, rising from ₹910.42 crore in fiscal year 2022 (FY22) to ₹1,962.6 crore in fiscal year 2024 (FY24). Furthermore, the company’s profit after tax (PAT) has grown even more significantly, with a CAGR of 90.75%, climbing from ₹94.74 crore in FY22 to ₹344.72 crore in FY24. This substantial financial growth reflects NTPC Green Energy’s expanding market presence and operational efficiency in India’s renewable energy sector.