The Indian government has put forward a proposal to reduce the Goods and Services Tax (GST) rate for the renewable energy sector from the current 12% to 5%. This move could potentially have significant implications for companies operating in the green energy space, including NTPC Green Energy .

Proposed GST Reduction

The government's suggestion to slash the GST rate for renewable energy by more than half is seen as a potential catalyst for the sector. If implemented, this reduction could lead to lower costs for renewable energy projects and potentially accelerate the adoption of clean energy solutions across the country.

Implications for NTPC Green Energy

NTPC Green Energy, a key player in India's renewable energy landscape, could stand to benefit from this proposed tax cut. The company, which focuses on developing and operating renewable energy projects, may see improved project economics and potentially enhanced competitiveness in the market if the GST reduction comes into effect.

Recent Developments at NTPC Green Energy

While the GST reduction proposal is still under consideration, NTPC Green Energy continues to make strides in its operational expansion. According to a recent disclosure by the company:

• The third part capacity of 49.13 MW out of the 300 MW Khavda Solar Energy Project in Khavda, Bhuj, Gujarat has been declared commercially operational.
• This project is being developed by NTPC Renewable Energy Limited, a wholly owned subsidiary of NTPC Green Energy, under the 450 MW Hybrid Tranche V Project.
• The first part capacity of 142.20 MW and second part capacity of 32.80 MW of this project were previously declared commercially operational.

Sector Outlook

The proposed GST reduction, if implemented, could provide a significant boost to the entire renewable energy sector. For companies like NTPC Green Energy, this could translate into:

1. Reduced project costs
2. Improved profit margins
3. Enhanced ability to offer competitive pricing for renewable energy
4. Potential acceleration of ongoing and planned projects

As the renewable energy sector awaits further details on the proposed GST reduction, companies like NTPC Green Energy continue to expand their operational capacities, contributing to India's growing green energy infrastructure.

Investors and industry observers will be keenly watching for any official announcements regarding the GST rate change and its potential impact on the renewable energy landscape in India.

NTPC Green Energy Limited's subsidiary, NTPC Renewable Energy, has marked a significant milestone in its solar energy expansion efforts. The company has successfully commenced commercial operations of an additional 49.125 MW capacity at its 300 MW Khavda Solar Project in Gujarat, effective August 22, 2025.

Project Details

The newly operational capacity is part of the 300 MW Khavda Solar Energy Project located in Khavda, Bhuj, Gujarat. This project falls under the larger 450 MW Hybrid Tranche V Project, showcasing NTPC's commitment to diversifying its renewable energy portfolio.

Phased Implementation

The company has been implementing the project in phases:

• First phase: 142.20 MW capacity declared operational on June 28, 2025
• Second phase: 32.80 MW capacity added on June 30, 2025
• Third phase: 49.13 MW capacity now operational from August 22, 2025

With this latest addition, NTPC Renewable Energy has successfully brought online a total of 224.13 MW of solar capacity at the Khavda site.

Corporate Structure

NTPC Renewable Energy Limited operates as a wholly-owned subsidiary of NTPC Green Energy Limited.

This expansion aligns with India's push towards increasing its renewable energy capacity and reducing dependence on fossil fuels. As NTPC continues to grow its green energy portfolio, such developments are likely to play a crucial role in the country's energy transition journey.

The company made this announcement in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, underlining its commitment to transparent communication with stakeholders.