New Delhi: The Union Cabinet has approved enhanced investment powers for NTPC Limited, allowing the Maharatna public sector utility to invest up to Rs 20,000 crore in its renewable energy subsidiaries — more than double the earlier cap of Rs 7,500 crore.
The decision, taken by the Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi, is aimed at accelerating renewable capacity addition by the NTPC Group. The exemption applies to investments in NTPC Green Energy Ltd (NGEL), a subsidiary of NTPC, and through it, into NTPC Renewable Energy Ltd (NREL) and other joint ventures or subsidiaries involved in green energy projects.
According to a government statement issued Wednesday, the move will enable NTPC to pursue its goal of installing 60 GW of renewable energy capacity by 2032. This target forms part of India’s broader energy transition plan, including a 500 GW non-fossil fuel capacity target by 2030 and a long-term ambition to reach net zero emissions by 2070.
NTPC currently operates through NGEL to drive its green energy expansion, both organically and through joint ventures. NGEL’s wholly owned subsidiary NREL will lead the bulk of its solar and wind project execution.
NGEL, the listed renewable subsidiary of NTPC, has a total portfolio of about 32 GW in renewable capacity. This includes 6 GW of operational assets, 17 GW of contracted or awarded capacity, and a 9 GW pipeline under development. The Cabinet said the enhanced investment delegation will support faster execution of this portfolio.
The government noted that NTPC’s renewable projects will contribute to strengthening power infrastructure and improving round-the-clock electricity access nationwide.
In addition to supporting India’s climate goals, the Cabinet said the investments would generate direct and indirect jobs during both construction and operations phases. The development of new renewable projects is also expected to benefit local suppliers, MSMEs, and other small enterprises, providing a boost to local economies and entrepreneurship.
India recently crossed a key milestone in its energy transition journey, achieving 50 percent of installed electricity capacity from non-fossil fuel sources — five years ahead of its Nationally Determined Contribution (NDC) deadline under the Paris Agreement.