Cabinet clears ₹20,000-crore investment path for NTPC’s green energy expansion

The Union Cabinet has approved enhanced investment autonomy for NTPC Limited , allowing the maharatna PSU to invest up to ₹20,000 crore in its renewable energy subsidiaries—NTPC Green Energy Ltd (NGEL) and its downstream arms, including NTPC Renewable Energy Ltd (NREL) and joint ventures, a significant policy fillip to power India’s clean energy ambitions.

This decision, approved by the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi, lifts the earlier investment cap of ₹7,500 crore and grants NTPC the flexibility to accelerate its renewable energy rollout. The move aligns with NTPC’s ambitious target of 60 GW of renewable capacity by 2032, forming a key component of India’s broader climate goals.

NGEL, a listed subsidiary and the spearhead of NTPC’s renewable operations, currently manages a renewable portfolio of approximately 32 GW. This includes a near-6 GW operational capacity, a near-17 GW of contracted or awarded capacity, and a near-9 GW in the pipeline.

Much of NGEL’s future organic growth will be driven through NTPC Renewable Energy Ltd (NREL), its wholly owned subsidiary. Additionally, NGEL has established strategic partnerships with various state governments and public sector enterprises for project development across solar, wind, hybrid, and storage technologies.

The Cabinet’s decision is expected to expedite the deployment of large-scale renewable energy projects, thereby strengthening India’s power infrastructure and enhancing the reliability of 24/7 electricity access. The construction and operations phases of these projects are also expected to generate substantial employment, spur entrepreneurship through MSMEs and local suppliers, and contribute to regional economic growth.

The announcement comes as India crosses a significant threshold in its energy transition journey—50% of its installed power capacity now comes from non-fossil fuel sources, five years ahead of its original 2030 target under the Paris Agreement’s Nationally Determined Contributions (NDCs).

India is now pursuing a broader goal of 500 GW of non-fossil capacity by 2030 and net-zero emissions by 2070. NTPC’s expanded green energy blueprint will play a crucial role in achieving these milestones.

As the country’s largest power generator, NTPC’s expanded financial autonomy marks a decisive step forward, unlocking speed, scale, and flexibility in India’s transition to clean and sustainable energy.