NLC India gets Cabinet nod to invest ₹7,000 crore in renewables projects

The Union Cabinet on Wednesday approved a special exemption for NLC India Limited (NLCIL), formerly Neyveli Lignite Corporation Limited, that will allow the state-run power utility to invest ₹7,000 crore in its wholly owned subsidiary—NLC India Renewables Limited (NIRL)—without requiring prior approvals or adhering to investment ceilings imposed on other Navratna Central Public Sector Enterprises (CPSEs), in a major policy boost for India’s renewable energy ambitions.

The move, approved by the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, grants NLCIL exemption from the Department of Public Enterprises’ guidelines that restrict CPSE investments in subsidiaries and joint ventures to 30% of their net worth. The exemption provides both NLCIL and NIRL greater financial and operational freedom to directly or jointly develop renewable energy assets across the country.

The decision is expected to fast-track NLCIL’s plans to develop 10.11 GW of renewable energy capacity by 2030, and scale this up to 32 GW by 2047. This expansion aligns with India’s broader national goals—announced during COP26—to install 500 GW of non-fossil fuel capacity by 2030 and achieve net-zero emissions by 2070.

Currently, NLCIL operates seven renewable energy projects with a cumulative capacity of 2 GW, which are either operational or nearing commercial readiness. These assets will be transferred to NIRL as part of the restructuring plan approved by the Cabinet. NIRL is envisioned as the company’s dedicated green energy platform and will be at the forefront of its expansion into solar, wind, and hybrid renewable projects.

The approval also empowers NIRL to participate independently in competitive bidding for new projects and form joint ventures, paving the way for more agile and market-driven renewable development.

Beyond environmental benefits, the investment is expected to create a substantial number of jobs during both the construction and operational phases of upcoming projects. This, officials say, will not only aid India’s clean energy transition but also support inclusive economic development in regions hosting the projects.

The Cabinet’s decision strengthens India’s commitment to reducing its dependence on coal, cutting fuel imports, and ensuring a more reliable, round-the-clock power supply. With this exemption, NLCIL is poised to play a more prominent role in shaping India’s low-carbon, sustainable energy future.

NLC India shares were up 3.9% at ₹238.60 in late trading on Wednesday.