New Delhi: The Union Cabinet approved on Wednesday a special exemption for NLC India Limited (NLCIL) to invest Rs 7,000 crore in its renewable energy arm without seeking prior approvals mandated under existing Navratna investment guidelines. The decision, announced by the Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi, allows NLCIL to invest in its wholly owned subsidiary NLC India Renewables Limited (NIRL), and enables NIRL to fund projects directly or via joint ventures. These investments will be exempt from the 30 percent net worth ceiling set by the Department of Public Enterprises (DPE) for CPSEs.
The move is expected to accelerate NLCIL’s renewable energy ambitions, which include commissioning 10.11 GW of clean energy capacity by 2030 and ramping up to 32 GW by 2047. The Cabinet said this is in line with India’s commitments made at COP26, including its Panchamrit goals and long-term Net Zero target by 2070.
“This strategic decision provides NLCIL and NIRL greater operational and financial flexibility,” the government said in a statement, calling it pivotal to achieving India’s goal of 500 GW of non-fossil energy capacity by the end of this decade.
NLCIL currently operates seven renewable energy projects totalling 2 GW, which are either operational or near commercial operation. These assets will now be transferred to NIRL, which has been positioned as the company’s flagship platform for green energy growth.
The government said NIRL is actively scouting for new projects and will participate in competitive bidding rounds across the sector.
Besides advancing climate goals, the Cabinet expects the investment to contribute to local employment, both during construction and later in operations. “This initiative will benefit local communities, generate employment, and support inclusive economic growth,” the statement said.
The move is also expected to reduce India’s dependence on fossil fuels, lower coal imports, and strengthen the reliability of round-the-clock power supply nationwide.