India Ratings and Research stated that the ratings reflect NGEL’s strong operational and strategic linkages with NTPC. NTPC group plans to increase its renewable energy (RE) capacity to 60GW by 2032 through NGEL.

NGEL also receives operational support from NTPC with key managerial persons appointed from NTPC and common directors.

At FYE25, NGEL has a total 5.9GW commissioned under its own books, its subsidiary, NTPC Renewable Energy Limited (NREL) and joint venture (JV) with Oil and Natural Gas Corporation Limited (ONGC) which acquired Ayana Renewable Power Private Limited (Ayana) with an operational capacity of 2.12GW.

NGEL raised money through an initial public offering in November 2024 amounting Rs 100 billion. To achieve the desired capacity addition, NGEL would continue to look for greenfield projects to be executed under NREL, inorganic acquisitions or increasing capacity through JVs with other public sector entities.

The ratings also factor in the availability of capital markets to fund the capex requirements owing to its parentage.

However, the ratings are constrained by a likely increase in the consolidated net leverage (net debt/EBITDA) with the increase in capex in the near-to-medium term.

NTPC Green Energy (NGEL) was incorporated as a fully owned subsidiary of NTPC on 7 April 2022 for developing RE parks and projects. It had been established as the renewable energy (RE) arm of NTPC with all the operational and under construction projects transferred to NGEL.