NTPC Green Energy Plans Rs 5,000 Cr Bond Issue for Renewable Expansion

In a major move to strengthen its renewable energy portfolio, NTPC Green Energy Ltd (NGEL) is planning to raise up to Rs 5,000 crore through the issuance of bonds in the financial year 2025-26. A subsidiary of India’s largest power producer, NTPC, NGEL is taking significant steps to fuel the country’s transition towards clean energy. The fundraising proposal will be considered and approved at a board meeting scheduled for April 29, 2025.

Source: Economic Times

Let’s dive deeper into the company’s expansion plans, key joint ventures, and how this bond issuance aligns with NTPC Green’s ambitious green energy targets.

What’s the Fundraising Plan?

NTPC Green Energy Ltd (NGEL) is looking to raise up to Rs 5,000 crore by issuing bonds or non-convertible debentures (NCDs) in one or more segments during FY26. According to the company’s regulatory filing, these bonds could be secured or unsecured, taxable or tax-free, and cumulative or non-cumulative.

The board meeting on April 29 will formally consider and approve this borrowing plan. The funds raised will play a crucial role in supporting NGEL’s growing renewable energy initiatives, as the company aims to rapidly scale up its green energy capacity over the next few years.

Key Financial Highlights of NTPC Green Energy Ltd.

Market Cap in Cr (as of 28.04.25)	CMP	High	PE	ROCE	ROE
₹ 87,760	₹ 104	₹ 155	255	7.60%	6.20

Source: Screener.in

For the quarter ending December 2024, the company reported a revenue of Rs 505 crore, marking a growth of approximately 13% compared to Rs 446 crore in the same quarter of the previous year. Profit also rose by around 18%, reaching Rs 66 crore for the December 2024 quarter, up from Rs 56 crore recorded in the corresponding quarter last year.

19 GW of Renewable Capacity by 2027

NTPC Green Energy has set an ambitious target—to achieve a renewable energy capacity of 19 gigawatts (GW) by 2026-27. This is part of NTPC’s broader vision to lead India’s transition to sustainable energy sources.

To meet this target, the company plans to invest nearly Rs 1 lakh crore in various green projects. This investment will not only help NTPC Green expand its renewable footprint but also contribute significantly to India’s goal of achieving net-zero emissions in the coming decades.

Source: Financial Express

Capacity Additions in FY25

NTPC had a strong performance in the financial year 2024-25. The company added 660 megawatts (MW) of thermal capacity and an impressive 3.3 GW of renewable energy capacity during the year.

For the current financial year (2025-26), NTPC has set even bigger goals—it plans to add 3 GW of coal-based capacity and 5 GW of renewable energy capacity. This shows the company’s balanced approach: while continuing to strengthen its conventional energy base, it is also aggressively pushing its green energy agenda.

Source: Financial Express

Key Partnerships Boosting Green Expansion

To fast-track its renewable ambitions, NTPC Green Energy has partnered with leading players in the energy space. Here’s a quick look at some major collaborations:

1. ONGC NTPC Green (ONGPL)

NTPC Green has formed a joint venture with ONGC Green Energy called ONGC NTPC Green (ONGPL). This venture is focused on setting up battery energy storage projects, offshore and onshore wind energy projects, and green chemical projects across India.

In a significant step, ONGPL recently completed the acquisition of a 100% equity stake in Ayana Renewable Power for Rs 6,248.50 crore. This acquisition gives NTPC Green a substantial boost in its renewable capacity and expands its presence across the solar and wind energy sectors.

2. Mahatma Phule Renewable Energy and Infrastructure Technology

NTPC Green has also joined hands with Mahatma Phule Renewable Energy and Infrastructure Technology to develop renewable energy parks. The plan is to build around 10 GW of renewable energy projects, mainly in Maharashtra but potentially in other states as well.

This strategic move aligns perfectly with NTPC Green’s vision of building large-scale renewable energy infrastructure and providing clean, reliable power across the country.

Source: Financial Express

Why the Focus on Bonds?

Raising funds through bonds or debentures allows NTPC Green to tap into the debt market efficiently without diluting ownership. Bonds are a popular choice for large infrastructure and energy companies because they offer flexibility in structuring the repayments and often come at lower interest rates compared to other forms of borrowing.

By issuing bonds in multiple tranches, NTPC Green can align its fundraising closely with the progress of its renewable projects, ensuring better financial management and cost optimization.

India’s Growing Green Energy Landscape

NTPC Green’s aggressive expansion comes at a time when India’s renewable energy sector is booming. The government’s push for clean energy, including plans to achieve 500 GW of non-fossil fuel capacity by 2030, has created a favorable environment for companies like NTPC Green.

With solar, wind, and emerging technologies like green hydrogen gaining traction, NTPC Green’s strategic investments and partnerships place it in a strong position to lead the energy transition.

What Lies Ahead?

The bond issuance is just one piece of NTPC Green’s expansion plans. Over the next few years, the company aims to:

• Commission multiple renewable projects across India.
  
• Strengthen its battery storage and green chemical portfolio.
  
• Explore offshore wind opportunities, a relatively untapped segment in India.
  
• Build large renewable parks through collaborations with state and central agencies.
  
• Maintain financial discipline to ensure profitable growth.
  

If NTPC Green succeeds in meeting its 19 GW target by 2026-27, it would establish itself as one of India’s largest green energy players and a significant contributor to the nation’s climate goals.

Conclusion

NTPC Green Energy Ltd’s plan to raise up to Rs 5,000 crore via bonds reflects its commitment to building a cleaner, greener future. With strong partnerships, a clear vision, and substantial investments in place, the company can make a significant impact in India’s renewable energy journey.

The upcoming board meeting on April 29, 2025, will mark a significant milestone in this journey, as the company seeks to secure the necessary funds to support its ambitious expansion plans. As the world moves towards sustainable energy, NTPC Green is gearing up to play a leading role in shaping India’s energy future.

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