NTPC and ONGC are making massive moves in the renewable energy sector. While NTPC along with NTPC Green Energy Limited has signed multiple MoUs with the Madhya Pradesh Government for multiple renewable energy projects in the states, ONGC on the other hand has approved Rs.1200 crore investment in ONGC Green for acquiring PTC Energy. Let’s dig deeper to understand how ONGC and NTPC Green Energy Investments can transform the renewable energy space with these projects.
NTPC’s Rs.2 Lakh Crore investment in MP
On Monday 24 February 2025, NTPC announced that it has entered into multiple Memorandums of Understanding (MoUs) with the Madhya Pradesh State Government for developing different renewable energy projects in the state spanning wind energy, hydro energy, solar energy, and other carbon-neutral sources of energy which are available in the state.
NTPC has entered into the contracts along with its subsidiary company, NTPC Green Energy Ltd. (NGEL). The first MoU has been signed between NGEL and MPPGCL or Madhya Pradesh Power Generating Company Ltd. According to this agreement, both companies will join hands to develop renewable energy projects that can produce up to 20 GW of energy and even more. This project/s has an estimated investment of Rs.120000 crore.
For this project, a joint venture company will be formed which will mitigate the renewable generation obligation and renewable purchase obligation of Madhya Pradesh Generating Company and Madhya Pradesh DISCOMs.
Another Rs.80000 crore project is in the pipeline for which NTPC has signed the MoU with Madhya Pradesh Power Management Company Ltd. (MPPMCL signed on Madhya Pradesh Government’s behalf) and this is for sustainable non-fossil fuel power plants.
Another MoU was signed between NTPC and the MP government for developing an 800 MW Pumped Hydro Storage Project and this has an estimated investment of Rs.4000 crore.
ONGC to acquire PTC Energy for Rs.1200 Crore
ONGC on the other hand has also announced its approval for a Rs.1200 crore investment in acquiring PTC Energy through ONGC Green Ltd. (OGL). The OGL is the subsidiary of the ONGC and this investment will be done via Rights offer of equity shares.
OGL will be acquiring 100% equity stakes of PTC Energy Limited and use the entire Rs.1200 crore for this acquisition as mentioned in the Share Purchase Agreement signed on 13 September 2024.
Apart from this, the board of ONGC has also approved the replacement of the corporate guarantee worth Rs.75 crore on behalf of OGL for PTC Energy Limited.
Share Market Movement
While NTPC and NGEL shares opened higher than yesterday’s close after the big announcement, however, they have slowed down as the day progresses. At 1:50 p.m. NTPC’s share price is trading at Rs.318.70 and NGEL’s share price is at Rs.98.30.
On the other hand, Oil and Natural Gas Corporation’s share price has also portrayed the same movement, opening at a high, and then becoming sluggish, currently trading at Rs.234 per share.
The macroeconomic factors have taken over these stocks like the entire market.
Source: CNBC TV18
______________________________________________________________________________________
Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.