Malaysian oil and gas company Petronas has offered to buy a 20 per cent stake in the green energy arm of NTPC for Rs 38 billion ($460 million), reported news agency Reuters, citing three sources. The offer puts NTPC Green Energy Ltd's (NGEL) valuation at $2.3 billion. 


According to the report, the offer was higher than the Rs 30 billion NTPC was expecting. Last year, the country's largest power producer, NTPC, asked for expressions of interest in NTPC Green Energy Ltd (NGEL).


An industry source and a banker told Reuters that Petronas outbid other firms with an offer of Rs 27.52 per share. The report added that REC Ltd was the second-highest bidder with Rs 15.47 per share offer. While Indraprastha Gas Ltd (IGL) placed a bid of Rs 6.67 per share. 


The deal is taking place at a time when the country's renewables industry is drawing more international investment. It is the first time a state-run corporation in India offered a stake in a renewable energy subsidiary, the report added.


Citing data from the commerce ministry, the report said that the renewables energy sector is among the country's top five industries attracting overseas investment this fiscal year.


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NTPC plans to use the proceeds from the sale to expand its non-fossil businesses. It is planning to invest more than $30 billion in the next 10 years to raise the share of non-fossil energy in its portfolio. The company has committed to adding 60 gigawatts of renewable energy by 2032 with a total group capacity of 130 gigawatts by that date, the report said. 


India has pledged to obtain 50 per cent of its installed electric power capacity from non-fossil fuel sources by 2030 and has set a goal of becoming net-zero by 2070. By 2030, the country wants to generate 500 gigawatts of renewable energy. 30 per cent of the nation's current installed capacity of 412 gigawatts comes from renewable energy sources like wind, hydro, and biomass.