NLCIL’s Green Push Gets Cabinet Nod for Major Investment
New Delhi: NLC India Limited (NLCIL), a Navratna Central Public Sector Enterprise (CPSE), has secured a pivotal exemption from the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, relieving it from the existing investment guidelines governing Navratna CPSEs. This landmark decision authorises NLCIL to channel Rs. 7,000 crore into its wholly owned subsidiary, NLC India Renewables Limited (NIRL), empowering NIRL to undertake diverse projects directly or through Joint Ventures without requiring prior approval under the current delegation of powers. Moreover, this investment is exempt from the 30% net worth ceiling imposed by the Department of Public Enterprises (DPE) for CPSE investments in Joint Ventures and subsidiaries, granting NLCIL and NIRL unprecedented operational and financial flexibility to spearhead transformative renewable energy initiatives.
These exemptions are strategically crafted to bolster NLCIL’s ambitious goal of achieving 10.11 gigawatts (GW) of Renewable Energy (RE) capacity by 2030, with a visionary target of expanding to 32 GW by 2047. This approval aligns seamlessly with India’s pledges at the 26th Conference of the Parties (COP26) to transition toward a low-carbon economy and advance sustainable development. India has committed to developing 500 GW of non-fossil fuel energy capacity by 2030 under its “Panchamrit” objectives and achieving Net Zero emissions by 2070, reinforcing its leadership in global climate action.
As a leading power utility and Navratna CPSE, NLCIL is at the forefront of this transformative journey. Through this substantial investment, NLCIL aims to significantly expand its renewable energy portfolio, making meaningful contributions to both national and global climate objectives while championing sustainable energy practices across India.
Currently, NLCIL manages seven renewable energy assets with a combined installed capacity of 2 GW, which are either operational or nearing commercial operation. Following this Cabinet approval, these assets will be transferred to NIRL. Positioned as the flagship platform for NLCIL’s green energy initiatives, NIRL is actively pursuing new opportunities within the renewable energy sector, including competitive bidding for innovative projects to further strengthen its portfolio.
This approval is poised to elevate India’s stature as a global leader in green energy by reducing reliance on fossil fuels, decreasing coal imports, and ensuring a reliable 24×7 power supply nationwide. Beyond its environmental benefits, this initiative is expected to create substantial employment opportunities—both direct and indirect—during the construction and operation phases, fostering inclusive economic growth and uplifting local communities across the country.
– global bihari bureau
