New Delhi: The Cabinet Committee on Economic Affairs (CCEA), 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), allowing the company to invest ₹7,000 crore in its wholly owned subsidiary, NLC India Renewables Limited (NIRL).
The move allows NIRL to further invest in various renewable energy projects either directly or through joint ventures without requiring prior approval under the existing delegation of powers. This investment has also been exempted from the 30% net worth ceiling stipulated by the Department of Public Enterprises (DPE) for overall investment by CPSEs in JVs and subsidiaries.
The exemption supports NLCIL’s target of developing 10.11 GW of renewable energy capacity by 2030 and expanding to 32 GW by 2047. The decision aligns with India’s commitment at COP26 to install 500 GW of non-fossil fuel energy capacity by 2030 and achieve net zero emissions by 2070.
NLCIL currently operates seven renewable energy assets with a total installed capacity of 2 GW. These assets, either operational or nearing commercial operation, will be transferred to NIRL following the Cabinet approval. NIRL, set up as the flagship platform for green energy initiatives of NLCIL, is also exploring new opportunities across the renewable sector and participating in competitive bids.
The Cabinet approval is aimed at supporting India’s transition to a low-carbon economy, reducing reliance on coal imports, and improving round-the-clock power supply reliability. It is also expected to generate both direct and indirect employment during the construction and operation phases, benefiting local communities.
