Centre approves NLCIL's ₹7,000-crore investment in renewable energy arm
According to an NLCIL press note, the Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister has granted an exemption from the existing guidelines of the Department of Public Enterprises (DPE), empowering NLCIL to invest in NIRL, and to enable NIRL to invest in projects independently or through joint ventures.
This significant decision exempts NLCIL and NIRL from the 30% net worth ceiling imposed on Central Public Sector Enterprises for investment in subsidiaries and joint ventures (JVs), ensuring enhanced operational autonomy and financial agility. The move is poised to catalyse NLCIL's growth in the renewable energy sector, aligning with India's national energy transition goals.
NLCIL operates a renewable energy portfolio of 1.4 GW. These assets will be transferred to NIRL to consolidate green energy initiatives under a unified platform.
With this strategic support, NLCIL plans to scale its renewable energy capacity from the current 1.4 GW to 10 GW by 2030, contributing significantly to India's commitment of installing 500 GW of non-fossil fuel capacity by 2030, as declared at COP 26 under the ''Panchamrit' strategy.
The long-term vision of NLCIL includes expanding this capacity to 32 GW by 2047, in alignment with the nation's goal of achieving Net Zero emissions by 2070.
NLCIL said the approval would help the company strengthen India's global position in green energy leadership; reduce India's coal imports and carbon footprint; ensure reliable 24x7 power supply through clean sources; generate large-scale direct and indirect employment, and promote inclusive socio-economic development in project regions.
According to NLCIL Chairman and Managing Director Prasanna Kumar Motupalli, 'The support extended by the Government of India through this exemption is a game changer for NLCIL's renewable energy roadmap. It reaffirms our commitment to building a sustainable future and scaling up green energy infrastructure. The company is now well-positioned to invest in cutting-edge technologies and forge strategic collaborations that will help us realise our goals.'
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