Key Points

This strategic decision enables NLCIL to invest Rs 7,000 Crore in its wholly owned subsidiary, NLC India Renewables Limited (NIRL) and in turn, NIRL invests in various projects directly or through the formation of Joint Ventures, without the requirement of prior approval under the existing delegation of powers, the Cabinet Committee on Economic Affairs (CCEA) stated in a statement.

This investment is further exempted from the 30 per cent 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 aim to 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.

The approval aligns with India's commitments made during COP26 for the transition toward a low-carbon economy and achieving 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 a significant power utility and Navratna CPSE, NLCIL is playing a pivotal role in this transition. Through this investment, NLCIL seeks to substantially expand its renewable energy portfolio and contribute meaningfully to national and global climate action objectives, the statement added.

At present, 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.

The approval is expected to reinforce India's position as a green energy leader by reducing dependence on fossil fuels, lowering coal imports, and enhancing the reliability of 24x7 power supply across the country.

Beyond the environmental impact, this initiative is projected to generate significant employment--both direct and indirect--during the construction and operation phases, thereby benefiting local communities and supporting inclusive economic growth, the statement added.

- ANI