Centre allows NLCIL to invest Rs 7,000 crore in NIRL through renewable energy projects
Centre gives special exemption to NLCIL, allows Rs 7,000 crore investment in NIRL
By Newsmeter Network
New Delhi: The Cabinet Committee on Economic Affairs, chaired by prime minister Narendra Modi, has granted a special exemption to NLC India Limited (NLCIL) from existing investment norms governing Navratna Central Public Sector Enterprises (CPSEs).
This strategic move allows NLCIL to invest Rs 7,000 crore in its wholly owned subsidiary, NLC India Renewables Limited (NIRL), which will further invest directly or through joint ventures in various renewable energy projects, without requiring prior approvals under the current delegation of powers.
Enhanced operational and financial autonomy
Additionally, this investment has been exempted from the Department of Public Enterprisesā (DPE) guideline that caps CPSE investments in subsidiaries and JVs at 30 per cent of net worth. The relaxation of these constraints provides both NLCIL and NIRL with enhanced operational and financial autonomy.
These exemptions are designed to facilitate NLCILās goal of developing 10.11 GW of renewable energy capacity by 2030 and scaling this up to 32 GW by 2047.
The approval aligns with Indiaās climate commitments made at COP26, including the target of achieving 500 GW of non-fossil fuel-based power capacity by 2030 under the nationās āPanchamritā agenda, and attaining net-zero emissions by 2070.
What is the role of NLCIL?
As a major power utility and Navratna CPSE, NLCIL plays a key role in the countryās transition to clean energy. This investment will significantly boost its renewable energy portfolio and strengthen Indiaās position in global climate action.
Currently, NLCIL operates seven renewable energy projects with a combined capacity of 2 GWāeither functional or nearing commercial operation. These assets will be transferred to NIRL as part of the Cabinetās approval. NIRL is set to serve as the central vehicle for NLCILās green energy initiatives and is actively pursuing new opportunities, including competitive bidding for upcoming renewable projects.
The decision is expected to accelerate Indiaās shift from fossil fuels, reduce coal imports and ensure a reliable 24x7 power supply across the nation. In addition to its environmental impact, the initiative will create substantial direct and indirect employment during both construction and operational phases, driving local development and inclusive economic growth.
