NTPC Renewable Energy Limited, a wholly-owned subsidiary of NTPC Ltd, India’s largest integrated energy company has signed a power purchase agreement (PPA) with Gujarat Urja Vikas Nigam Limited (GUVNL) to sell power from its 150 MW solar project. The project, which will be installed in Gujarat, will sell power at a tariff of Rs.2.20 per kWh.
With this successful bid, the company’s total capacity under TBCB tenders has reached 1.4 GW. The company has also been allocated land in Rann of Kutch by the Government of Gujarat for developing a solar park with a capacity of 4750 MW.
The 7 month-old 100% subsidiary, floated with the purpose of developing renewable energy projects, is currently building 6 GW solar capacity in the country.
The strong backing of the parent, NTPC Ltd is also reflected in the highest domestic credit rating assigned to the subsidiary by India Ratings (a Fitch group company). The company is also in the process of receiving Rs. 2100 crore of long term loans from banks for its under-construction projects.