SJVN Plans to List Green Energy Arm Following NTPC Green IPO
In a significant move towards expanding its renewable energy footprint, SJVN Green Energy Ltd (SGEL) is set to follow the footsteps of NTPC Green Energy Ltd (NGEL) by listing its subsidiary on the stock market. This strategic decision comes on the heels of NTPC Green's impressive Rs 10,000 crore initial public offer (IPO), which is expected to launch by the end of 2024.
SGEL's Growth Ambitions
SGEL is on an ambitious path, aiming to achieve 25,000 MW of installed renewable energy capacity by 2030 and 50,000 MW by 2040. To support this growth, SGEL has entered into a significant long-term agreement with AM Green Ammonia Holdings, a subsidiary of Greenko Group. This partnership will supply 4,500 MW of carbon-free energy to Greenko's green ammonia facilities, highlighting SGEL's commitment to sustainable energy solutions.
Strategic Investments and Partnerships
SGEL has already made substantial strides in its renewable energy projects. The company has secured 1,352 MW of solar power projects in Maharashtra and has entered into a joint venture with Assam Power Distribution Company Limited (APDCL). This collaboration aims to develop renewable energy projects, including a notable 1,000 MW of floating solar power projects in Assam.
Monetizing Green Investments
As companies increasingly channel their retained earnings into green initiatives, monetizing equity stakes in green subsidiaries is becoming a prominent strategy. According to sources, SGEL is preparing for its IPO to raise capital and further its renewable energy goals, following the example set by NTPC Green Energy’s successful IPO.
SJVN's Capital Expenditure Plans
For the fiscal year 2025, SJVN has projected a capital expenditure of Rs 12,000 crore, with the majority allocated to renewable capacity expansion through SGEL. This investment underscores SJVN’s commitment to enhancing its renewable energy portfolio and contributing to India’s clean energy targets.
Government Support and Renewable Energy Goals
The Department of Investment and Public Asset Management (DIPAM) has been supportive of energy sector public sector enterprises (CPSEs) in floating subsidiaries and joint ventures. This support is part of a broader strategy to capitalize on the lower corporate tax regime of 15% for new manufacturing firms set up by March 2024.
The Indian government has set an ambitious target to achieve 500 GW of installed renewable energy capacity by 2030. In alignment with this goal, energy sector CPSEs are actively pursuing renewable projects and consolidating their renewable assets into new subsidiaries, driving the nation’s progress towards its Net Zero target by 2070.
Stay tuned for more updates on SGEL’s IPO and its impact on the renewable energy sector.
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