NEW DELHI: The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, Wednesday approved a special exemption for NLC India Limited (NLCIL), allowing the Navratna PSU to invest Rs 7,000 crore in its wholly owned subsidiary, NLC India Renewables Limited (NIRL), bypassing existing investment norms applicable to Central Public Sector Enterprises (CPSEs).
This strategic move exempts NLCIL from the requirement of prior approval under the current delegation of powers, as well as the 30 per cent net worth cap on investments in subsidiaries and joint ventures prescribed by the Department of Public Enterprises (DPE).
The decision provides greater financial and operational flexibility to NLCIL and its green energy arm, NIRL.
The investment is aimed at fast-tracking NLCIL’s renewable energy ambitions, with plans to ramp up its capacity from the current 2 GW to 10.11 GW by 2030 and 32 GW by 2047.
The initiative is in line with India’s commitments under the COP26 climate goals and the “Panchamrit” targets, which include developing 500 GW of non-fossil fuel energy capacity by 2030 and achieving Net Zero emissions by 2070.
At present, NLCIL operates seven renewable energy projects with a combined capacity of 2 GW, either operational or nearing commercial launch.
These assets will be transferred to NIRL following the cabinet approval. NIRL is expected to emerge as NLCIL’s flagship platform for scaling green energy operations and will explore new project opportunities, including through competitive bidding and joint ventures.
The government said the decision will not only reinforce India’s leadership in clean energy transition but also help reduce dependence on fossil fuels, cut coal imports, and enhance the reliability of 24×7 power supply.
Additionally, the move is projected to create substantial employment during the construction and operational phases, supporting local communities and inclusive economic growth.
Agencies