India’s push for renewable energy just got a significant boost as the Union Cabinet approved major investment increases for state-owned giants NTPC Ltd and NLC India Ltd.
Boosting Green Energy Investments
In a landmark decision, the Union Cabinet has significantly increased the investment limits for two of India’s largest public sector undertakings, NTPC Ltd and NLC India Ltd, specifically for their renewable energy ventures.
NTPC, a leading power producer, can now invest up to Rs 20,000 crore in its subsidiary, NTPC Green Energy Ltd (NGEL). This is a substantial jump from the previous limit of Rs 7,500 crore.
Similarly, NLC India Ltd, primarily known for lignite mining, received an exemption allowing it to inject Rs 7,000 crore into its renewable energy arm, NLC India Renewables Limited (NIRL).
NTPC’s Ambitious Green Plans
The enhanced financial flexibility comes at a crucial time for NTPC Green Energy. The subsidiary successfully launched its Initial Public Offering (IPO) in November 2024, aiming to raise Rs 10,000 crore.
NGEL currently boasts an impressive portfolio of approximately 32 gigawatts (GW) of renewable energy assets. Of this, 6 GW are already operational, 17 GW have been awarded, and another 9 GW are in various stages of development.
This increased delegation is set to accelerate the development of renewable projects across the country, helping NTPC achieve its ambitious goal of adding 60 GW of renewable energy capacity by 2032.
NLC India Joins the Renewable Race
While historically focused on thermal power through lignite, NLC India has been steadily expanding into the renewable energy sector. It already has an installed capacity of 2 GW in renewables.
The Cabinet’s decision allows NLC India to infuse the Rs 7,000 crore capital into NIRL. This investment is crucial for the company’s plans to expand its installed renewable portfolio to 10.11 GW by 2030 and a massive 32 GW by 2047.
Notably, this investment is also exempt from the Department of Public Enterprises’ 30% net worth ceiling for investments by central public sector enterprises (CPSEs) in joint ventures and subsidiaries, providing even greater financial flexibility.
India’s Growing Green Footprint
These approvals underscore India’s unwavering commitment to its clean energy transition. The nation has set an ambitious target of achieving 500 GW of non-fossil energy capacity, which includes nuclear, large hydro, and renewables, by 2030.
As of June 30, India’s non-fossil fuel sources have surpassed thermal energy in total installed capacity, now accounting for 50.1% of the total 485 GW. These investments by public sector giants are vital steps in maintaining this momentum and achieving national green energy goals.
- NTPC’s renewable energy investment limit increased to Rs 20,000 crore from Rs 7,500 crore.
- NLC India can now invest Rs 7,000 crore in its renewable subsidiary, NLC India Renewables Limited.
- NTPC Green Energy Ltd (NGEL) aims for 60 GW by 2032, building on its current 32 GW portfolio.
- NLC India aims to expand its renewable capacity to over 10 GW by 2030 and 32 GW by 2047.
- These approvals boost India’s goal of 500 GW non-fossil energy capacity by 2030.
This strategic move by the government is expected to accelerate India’s transition towards a more sustainable and greener energy future, solidifying its position as a global leader in renewable energy development.
