Cabinet approves ₹20,000 crore for NTPC, ₹7,000 crore for NLCIL

Mint

16-07-2025

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, allowed the state-owned National Thermal Power Corporation Limited to invest ₹ 20,000 crore, with the aim to generate 60 GW of renewable energy capacity by 2032. Additionally, The Cabinet approved Neyveli Lignite Corp India Limited (NLCIL) to invest ₹ 7,000 crore by granting a special exemption from the current investment guidelines applicable to Navratna Central Public Sector Enterprises.
The proposed investment will be directed to NTPC Green Energy Limited (NGEL), a subsidiary. Subsequently, NGEL will invest in NTPC Renewable Energy Limited (NREL) and its other subsidiaries, exceeding the previously approved limit of ₹ 7,500 crore, and will now be increased to up to ₹ 20,000 crore.
According to the government, the additional funds to NTPC will boost the development of renewable projects in India and play a vital role in strengthening power infrastructure to provide a reliable, continuous access to electricity across the country.
Investment in renewable Energy projects is also expected to generate direct and indirect employment opportunities for local people. Additionally, it will encourage entrepreneurship opportunities within the country, besides promoting employment and socio-economic development, according to the government.
The Cabinet approved ₹ 7,000 crore investment by NLCIL, which will be directed towards its wholly owned subsidiary, NLC India Renewables Limited (NIRL). This investment is exempt from the 30% net worth limit set by the Department of Public Enterprises (DPE) for total investments by public sector enterprises in joint ventures and subsidiaries, granting NLCIL and NIRL increased operational and financial flexibility.
Through this investment, NLCIL aims to develop 10.11 GW of Renewable Energy (RE) capacity by 2030 and up to 32 GW by 2047.