The Cabinet Committee on Economic Affairs, chaired by the Prime Minister, has granted NLC India Limited (NLCIL) a special exemption from the current investment norms for Navratna Central Public Sector Enterprises (CPSEs). This strategic approval allows NLCIL to invest Rs 70 billion in its wholly owned subsidiary, NLC India Renewables Limited (NIRL), which can further invest in renewable energy projects directly or via joint ventures without prior approvals.

This investment is also exempted from the 30 per cent net worth cap imposed by the Department of Public Enterprises (DPE) on CPSEs’ total investments in subsidiaries and JVs, thereby enhancing NLCIL and NIRL’s financial and operational flexibility.

The move is intended to support NLCIL’s target of developing 10.11 GW of renewable energy capacity by 2030, expanding to 32 GW by 2047. It is aligned with India’s commitments under the COP26 framework, including the Panchamrit goals and the pledge to reach Net Zero emissions by 2070 through a 500 GW non-fossil energy capacity by 2030.

Currently, NLCIL operates seven renewable energy assets with a total installed capacity of 2 GW, all of which are operational or nearing commercial readiness. These assets will be transferred to NIRL following this Cabinet decision. NIRL is positioned as NLCIL’s central platform for green energy, actively seeking new opportunities and participating in competitive bids for future projects.