The Cabinet Committee on Economic Affairs, chaired by the Prime Minister, has granted NLC India Limited (NLCIL) a special exemption from prevailing investment guidelines for Navratna Central Public Sector Enterprises (CPSEs), enabling it to invest Rs 70 billion in its wholly owned subsidiary, NLC India Renewables Limited (NIRL). This strategic relaxation allows NIRL to invest directly or form joint ventures without prior approvals and exempts the investment from the Department of Public Enterprises’ 30 per cent net worth cap on CPSE investments in subsidiaries and JVs.

The move is designed to provide greater financial and operational flexibility as NLCIL accelerates efforts to meet its renewable energy ambitions—developing 10.11 GW capacity by 2030 and expanding to 32 GW by 2047. These goals support India's COP26 climate commitments, including building 500 GW of non-fossil fuel energy capacity by 2030 and achieving Net Zero emissions by 2070 under the Panchamrit strategy.

Currently, NLCIL operates seven renewable energy assets with a combined installed capacity of 2 GW, either already in operation or nearing commercial launch. These assets will now be transferred to NIRL, which has been envisioned as the flagship platform for executing NLCIL’s green energy projects. NIRL is also actively pursuing new opportunities through competitive bidding and other mechanisms to expand its portfolio.

This Cabinet approval is expected to strengthen India’s leadership in the global green energy space, reduce reliance on fossil fuels, and curb coal imports, while also supporting uninterrupted power supply across the nation.

In addition to environmental gains, the initiative is expected to generate considerable employment—both directly and indirectly—during project construction and operation, thus fostering inclusive economic development and benefiting local communities.