How Is the Cabinet Fast-Tracking NLCIL's Green Energy Initiatives?

New Delhi, July 16 (NationPress) The Cabinet Committee on Economic Affairs (CCEA), led by Prime Minister Narendra Modi, has granted a unique exemption to NLC India Limited (NLCIL) from the existing investment regulations that apply to Navratna Central Public Sector Enterprises. This pivotal decision allows NLCIL to channel Rs. 7,000 crore into its fully-owned subsidiary, NLC India Renewables Limited (NIRL), enabling NIRL to invest in various projects either directly or through Joint Ventures without needing prior approval as per the current delegation of powers, according to an official announcement following the CCEA meeting.

This investment is also exempt from the 30 percent net worth limit mandated by the Department of Public Enterprises (DPE) for overall investments by Central public sector enterprises in joint ventures and subsidiaries, providing NLCIL and NIRL enhanced operational and financial flexibility, the statement noted.

The exemptions are designed to bolster NLCIL’s ambitious goal of achieving 10.11 GW of Renewable Energy (RE) capacity by 2030, with an aim to expand this to 32 GW by 2047.

This approval is in line with India’s commitments from COP26 aimed at transitioning to a low-carbon economy and achieving sustainable development. The nation has pledged to develop 500 GW of non-fossil fuel energy capacity by 2030 as part of the “Panchamrit” goals, along with a long-term target to attain Net Zero emissions by 2070, according to the announcement.

As a key power utility and Navratna CPSE, NLCIL is crucial in this transition. Through this investment, NLCIL aims to significantly enhance its renewable energy portfolio and contribute substantially to both national and global climate action efforts.

Currently, NLCIL operates seven renewable energy assets with a total installed capacity of 2 GW, either operational or nearing commercial operation. These assets will be transferred to NIRL following this Cabinet approval. NIRL is envisioned as the primary platform for NLCIL’s green energy initiatives and is actively pursuing new opportunities in the renewable energy sector, including competitive bidding for emerging projects.

This approval is anticipated to strengthen India’s stature as a leader in green energy by decreasing reliance on fossil fuels, reducing coal imports, and improving the reliability of 24x7 power supply across the nation.

Beyond its environmental implications, this initiative is expected to create significant employment—both direct and indirect—during the construction and operational phases, thereby benefiting local communities and fostering inclusive economic growth, the statement concluded.