The Union Cabinet has paved the way for India’s renewable energy ambitions. The Cabinet Committee on Economic Affairs chaired by the Prime Minister, has approved a special exemption for NLC India Limited (NLCIL) from the prevailing investment guidelines applicable to Navratna Central Public Sector Enterprises (CPSEs).
This enables NLCIL to invest Rs.7,000 Crore in its wholly owned subsidiary, NLC India Renewables Limited (NIRL) and in turn NIRL investing in various projects directly or through formation of Joint Ventures, without the requirement of prior approval under the existing delegation of powers.
This investment is further exempted from the 30% net worth ceiling stipulated by the Department of Public Enterprises (DPE) for overall investment by CPSEs in JVs and Subsidiaries providing NLCIL and NIRL greater operational and financial flexibility.
The exemptions support NLCIL’s ambitious target of developing 10.11 GW of Renewable Energy (RE) capacity by 2030 and expanding this to 32 GW by 2047. T
his aligns with India’s commitments made during COP26 for transition toward a low-carbon economy and achieve sustainable development. The country has pledged to build “500 GW of non-fossil fuel energy capacity by 2030 as part of the ‘Panchamrit’ goals and its long-term commitment to achieve Net Zero emissions by 2070,” as stated officially.
As a significant power utility and Navratna CPSE, NLCIL is playing a pivotal role in this transition. NLCIL operates seven renewable energy assets with a total installed capacity of 2 GW, which are either operational or close to commercial operation.
These assets will be transferred to NIRL pursuant to this Cabinet approval. NIRL, envisioned as the flagship platform for NLCIL’s green energy initiatives, is actively exploring fresh opportunities across the renewable energy sector, including participation in competitive bidding for new projects.
This approval is expected to reinforce India’s position as a green energy leader by reducing dependence on fossil fuels, lowering coal import, and enhancing reliability of 24×7 power supply across the country. It is also projected to generate significant employment – both direct and indirect, during the construction and operation phases.
India’s recent achievement of 50% non-fossil fuel capacity, five years ahead of schedule, underscores the momentum behind such initiatives, driving economic and environmental progress.