As Panchabuta has reported in November last year, NTPC has signed a joint venture with Asian Development Bank (ADB), Kyushu Electric Power Japan to set up 500MW renewable power in 3 years in India.
Under the joint venture agreement, ADB will invest up to 40 million dollars for a 25 percent stake in the company. The move is part of ADB’s goal of investing two billion dollars a year in renewable energy and energy efficiency projects in Asia and the Pacific to help put the region on a sustainable development path. NTPC will have a 50 percent holding in the company with Kyushu Electric Power owning the remaining 25 percent.
Since Kyuden International Corporation, Japan a subsidiary of Kyushu Electric Power had made a proposal to the government of India to set up a JV company to act as an investing company to make downstream investment in the business of developing and establishing renewable power projects.
Based on the recommendations of Foreign Investment Promotion Board (FIPB) in its meeting held on March 11, 2011, Government of India has approved the proposal of Foreign Direct Investment (FDI) by Kyuden International Corporation, Japan to invest Rs. 1.625Cr.