The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved a special exemption for NLC India Limited (NLCIL) to invest Rs.7,000 crore in its renewable energy expansion plans without adhering to certain existing investment guidelines for Navratna Central Public Sector Enterprises (CPSEs).
The decision will allow NLCIL to infuse the funds into its wholly owned subsidiary, NLC India Renewables Limited (NIRL). The subsidiary can then invest in renewable energy projects directly or through joint ventures without seeking prior approvals under the current delegation of powers. The exemption also lifts the ceiling that limits overall investment by CPSEs in joint ventures and subsidiaries to 30% of their net worth.
According to the official statement, this move will provide NLCIL and its subsidiary greater financial and operational flexibility to pursue large-scale renewable energy projects.
The approval supports NLCIL’s target of developing 10.11 GW of renewable energy capacity by 2030 and expanding this further to 32 GW by 2047. It aligns with India’s broader climate commitments made at COP26, including building 500 GW of non-fossil fuel energy capacity by 2030 and achieving net zero emissions by 2070.
NLCIL, a Navratna CPSE engaged in lignite mining and power generation, currently operates seven renewable energy assets with a combined installed capacity of 2 GW. These assets will be transferred to NIRL as part of the new arrangement.
The statement said NIRL will serve as the main platform for driving the company’s green energy projects and is actively looking at new opportunities in the sector, including participating in competitive bids for upcoming projects.
The approval is expected to help reduce India’s dependence on fossil fuels, lower coal imports, and support reliable round-the-clock power supply across the country.