NLC India Limited Secures Major Investment Approval for Renewable Energy Expansion

The Cabinet Committee on Economic Affairs has approved a significant investment for NLC India Limited, allowing it to invest Rs. 7,000 crore in its subsidiary, NLC India Renewables Limited. This strategic decision aims to enhance NLCIL's renewable energy capacity, targeting 10.11 GW by 2030 and 32 GW by 2047. The approval aligns with India's commitments to a low-carbon economy and is expected to create substantial employment opportunities while reducing reliance on fossil fuels. NLCIL's efforts are pivotal in supporting national and global climate action objectives.

By Narendra Chaudhary Jul 16, 2025, 16:59 IST

Cabinet Committee Approves Investment for NLCIL

New Delhi, July 16: The Cabinet Committee on Economic Affairs (CCEA), led by Prime Minister Narendra Modi, has granted a special exemption to NLC India Limited (NLCIL) from the current investment regulations that apply to Navratna Central Public Sector Enterprises.

This strategic move allows NLCIL to allocate Rs. 7,000 crore to its fully-owned subsidiary, NLC India Renewables Limited (NIRL). NIRL will then be able to invest in various projects directly or through Joint Ventures without needing prior approval as per the existing delegation of powers, as stated in an official announcement following the CCEA meeting.

Additionally, this investment is exempt from the 30% net worth limit set by the Department of Public Enterprises (DPE) for overall investments by Central public sector enterprises (CPSEs) in subsidiaries and joint ventures. This exemption provides NLCIL and NIRL with enhanced operational and financial flexibility.

The exemptions are designed to assist NLCIL in achieving its ambitious goal of developing 10.11 GW of Renewable Energy (RE) capacity by 2030, with plans to expand this to 32 GW by 2047.

This approval is in line with India's commitments made during COP26 to transition towards a low-carbon economy and to achieve sustainable development. The nation has pledged to establish 500 GW of non-fossil fuel energy capacity by 2030 as part of the 'Panchamrit' goals and aims for Net Zero emissions by 2070.

As a key player in the energy sector and a Navratna CPSE, NLCIL is crucial to this transition. Through this investment, the company aims to significantly enhance its renewable energy portfolio and contribute to both national and global climate action efforts.

Currently, NLCIL manages seven renewable energy projects with a combined installed capacity of 2 GW, which are either operational or nearing commercial operation. These assets will be transferred to NIRL following this Cabinet approval. NIRL is envisioned as the primary platform for NLCIL's green energy initiatives and is actively seeking new opportunities in the renewable energy sector, including competitive bidding for upcoming projects.

This approval is anticipated to strengthen India's position as a leader in green energy by decreasing reliance on fossil fuels, reducing coal imports, and improving the reliability of 24x7 power supply nationwide.

In addition to its environmental benefits, this initiative is expected to create substantial employment opportunities—both directly and indirectly—during the construction and operational phases, thus aiding local communities and fostering inclusive economic growth.