Government Grants NLCIL Exemption to Propel Green Energy Expansion

The Cabinet Committee on Economic Affairs, led by the Prime Minister, has accorded NLC India Limited a significant exemption, enabling it to bypass existing investment guidelines for Navratna Central Public Sector Enterprises. This pivotal move allows NLCIL to channel ₹7,000 crore into its subsidiary, NLC India Renewables Limited, facilitating investments in projects directly or through strategic joint ventures.

This financial outlay is further liberated from the 30% net worth ceiling under the Department of Public Enterprises' regulations for CPSE investments in joint ventures and subsidiaries. Such flexibility supports NLCIL's aim to install 10.11 GW of renewable energy capacity by 2030, expanding to 32 GW by 2047. The initiative is part of India's wider strategy presented at COP26, which emphasizes transitioning to a low-carbon economy and achieving sustainable development.

As part of its long-term goals, India has vowed to establish 500 GW of non-fossil fuel energy by 2030 within the 'Panchamrit' framework, aiming for Net Zero emissions by 2070. NLCIL, a key player in this transformation, is thus set to significantly enhance its renewable energy operations. Current operations include seven renewable assets producing a combined 2 GW, all of which are to be integrated into NIRL following this latest mandate.

In positioning itself as a leader in renewable energy, NLCIL's strategy is expected to reduce fossil fuel dependency, minimize coal imports, and ensure a reliable 24/7 power supply nationwide. Moreover, the initiative will spur job creation throughout its construction and operational phases, fostering community development and broadening economic growth horizons.

(With inputs from agencies.)