The government said the instant decision has been necessitated due to change in capital structure following infusion of capital to the tune of Rs 1,500 crore by the government in March 2022.
NEW DELHI : The government on Friday approved the listing of IREDA, a CPSE under the Ministry of New & Renewable Energy (MNRE) on the stock exchanges through an initial public offer (IPO) by the part sale of the government’s stake in it to raise funds.
The government said the instant decision has been necessitated due to change in capital structure following the infusion of capital to the tune of Rs 1,500 crore by the government in March 2022. “This decision supersedes earlier CCEA decision taken in June 2017 for allowing IREDA (Indian Renewable Energy Development Agency) to issue 13.90 crore fresh equity shares of Rs 10.00 each to the public on book building basis through IPO,” reads the press note.
Now, the Department of Investment and Public Asset Management (DIPAM) will drive the listing process. “The IPO will help in unlocking the value of government’s investment on the one hand and on the other will provide an opportunity to the public to acquire a stake in the national asset and draw benefits therefrom,” reads the press note.
Besides, it will help IREDA in raising a part of its capital requirement for meeting growth plans without depending on the public exchequer, and improve governance through greater market discipline and transparency arising from listing requirements and disclosures.
IREDA is currently wholly owned Government of India, Mini-Ratna. In another decision, the Cabinet Committee on Economic Affairs granted an exemption to NTPC from the extant guidelines of delegation of power to Maharatna CPSEs for making an investment in NTPC Green Energy Limited (NGEL), a Subsidiary Company of NTPC Ltd.
The cabinet also exempted NGEL’s investment in NTPC Renewable Energy Limited (NREL) and its other JVs/subsidiaries subject to a ceiling of 15% of its net worth beyond the monetary ceiling of Rs 5,000 crore to Rs. 7,500 crores, towards achieving a target of 60 GW Renewable Energy (RE) Capacity by NTPC.
NTPC, through this investment in the RE sector, aims to add 60 GW of Renewable Energy Capacity by 2032 which will help the Country to achieve Net Zero emissions by 2070.
Source: PTI
