Advertisement
The Union Cabinet recently approved a significant exemption, allowing state-run NLC India Ltd (NLCIL) to invest INR 7,000 crore into its wholly-owned renewable energy subsidiary, NLC India Renewables Limited (NIRL). This special approval bypasses standard investment guidelines for Navratna Central Public Sector Enterprises, granting NLCIL enhanced financial and operational flexibility. The move is crucial for NLCIL's ambitious plans to substantially expand its green energy capacity, aiming for over 10 GW by 2030, thereby playing a vital role in India's national climate action goals and transition towards a low-carbon economy.
In a significant boost to India's renewable energy ambitions, the government today permitted state-run NLC India Ltd (NLCIL) to invest a substantial INR 7,000 crore in its wholly-owned subsidiary, NLC India Renewables Limited (NIRL). This decision, made by the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi, marks a pivotal step in accelerating the nation's green energy transition. Advertisement
The CCEA's approval grants NLCIL a special exemption from the prevailing investment guidelines typically applicable to Navratna Central Public Sector Enterprises (CPSEs). This means NLCIL can now inject funds into NIRL, and NIRL, in turn, can invest in various projects directly or through joint ventures, without requiring prior governmental approval under existing delegation of powers. Crucially, this investment is also exempted from a 30 percent net worth ceiling usually stipulated for overall investments by CPSEs in joint ventures and subsidiaries, providing NLCIL and NIRL with greater operational and financial flexibility.
This strategic move is set to enable NLCIL to aggressively pursue its renewable energy expansion roadmap. The company aims to add 10.11 gigawatts (GW) of renewable energy capacity by 2030, with a long-term vision of reaching 32 GW by 2047. Currently, NLCIL operates seven renewable energy assets with a combined installed capacity of 2 GW, which are either operational or nearing commercial operation. These existing assets will be formally transferred to NIRL following this Cabinet approval.
NIRL is envisioned as the flagship platform for NLCIL's green energy initiatives and is actively exploring fresh opportunities across the renewable energy sector, including participation in competitive bidding for new projects.
The Cabinet's approval directly aligns with India's commitments made during COP26, focusing on a transition towards a low-carbon economy and achieving sustainable development. India has notably pledged to build 500 GW of non-fossil fuel energy capacity by 2030 as part of its "Panchamrit" goals, a five-pronged strategy to combat climate change, and has committed to achieving net zero emissions by 2070. As a significant power utility and a Navratna CPSE, NLCIL is poised to play a crucial role in realizing these ambitious national and global climate action objectives.
Beyond the environmental benefits, this substantial investment is projected to reduce the country's dependence on fossil fuels and lower coal imports, thereby enhancing the reliability of round-the-clock power supply across the nation. The initiative is also anticipated to generate significant employment opportunities, both direct and indirect, during the construction and operation phases, which will benefit local communities and support inclusive economic growth.
Source PTI
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
