Govt permits NLC India to invest Rs 7,000 cr in green energy arm NIRL

New Delhi, Jul 16: The government on Wednesday allowed state-run NLC India to invest Rs 7,000 crore in its subsidiary NIRL to enhance renewable energy capacity in the country.

The decision will help NLC India to add 10.11 GW renewable energy capacity by 2030, taking it to 32 GW by 2047.

The Cabinet Committee on Economic Affairs under the chairmanship of Prime Minister Narendra Modi approved a special exemption for NLC India Ltd (NLCIL) from the prevailing investment guidelines applicable to Navratna Central Public Sector undertakings.

The decision permits “NLCIL to invest Rs 7,000 crore in its wholly owned arm NLC India Renewables Limited (NIRL) and in turn NIRL investing in various projects directly or through formation of Joint Ventures, without the requirement of prior approval under the existing delegation of powers,” an official statement said.

This investment is further exempted from the 30 per cent net worth ceiling stipulated by the Department of Public Enterprises for overall investment by CPSEs in JVs and subsidiaries providing NLCIL and NIRL greater operational and financial flexibility, the statement added.

Following the Cabinet approval, NLC will be able to raise more equity.

At present, NLCIL operates seven renewable energy assets with a total installed capacity of 2 GW, which are either operational or close to commercial operation.

“These assets will be transferred to NIRL pursuant to this Cabinet approval,” it said.

NIRL, the flagship platform for NLCIL’s green energy initiatives, is exploring fresh opportunities across the renewable energy sector, including participation in competitive bidding for new projects.

The approval aligns with the country’s commitments made during COP26 for transition toward a low-carbon economy and achieve sustainable development.

The country has pledged to build 500 GW of non-fossil fuel energy capacity by 2030 as part of the “Panchamrit” goals and its long-term commitment to achieve net zero emissions by 2070.

As a significant power utility and Navratna CPSE, NLCIL is playing a key role in this transition.

“Through this investment, NLCIL seeks to substantially expand its renewable energy portfolio and contribute meaningfully to national and global climate action objectives,” it said.

The approval is expected to reduce dependence on fossil fuels, lower coal import, and increase reliability of round-the-clock power supply across the country.