Green Energy Jackpot: NLC’s Spin-Off Powers Up Renewable Drive with NIRL

Updated: October 31, 2025 22:18

Image Source: The Economic Times

NLC India Limited has finalized a Business Transfer Agreement to hive off seven renewable energy assets totaling 1,430 MW to its wholly owned subsidiary, NLC India Renewables Limited. The transaction aligns with its asset monetization plan approved by the Ministry of Coal and is expected to conclude by December 31, 2025.

State-run NLC India Limited (NLCIL) on October 31, 2025, announced the execution of a Business Transfer Agreement with its wholly owned arm, NLC India Renewables Limited (NIRL), to transfer its renewable energy portfolio of seven assets aggregating to 1,430 MW capacity. This strategic hive-off forms a vital part of NLCIL’s asset monetization plan endorsed by the Ministry of Coal.

The transaction aims to consolidate all renewable assets under NIRL to enhance operational focus and unlock future investment opportunities in the clean energy sector. The transfer, classified as a related-party transaction, has received approvals from the Audit Committee, Board of Directors, and the Government of India.

Key highlights:

The Business Transfer Agreement was signed on October 31, 2025.
Completion of the asset transfer is scheduled for December 31, 2025.
The revenue generated by the seven renewable assets in FY25 stood at Rs. 701.61 crore, accounting for 4.59% of NLCIL’s consolidated revenue of Rs. 15,282.96 crore.
The net worth of these assets is Rs. 3,869.26 crore, representing 20.67% of NLCIL’s consolidated net worth of Rs. 18,722.97 crore as of March 31, 2025.
The consideration for the transfer will be settled by NIRL through issuance of equity shares or acknowledgment of debt, based on book value and adjusted against the opening balance sheets of the assets at the date of transfer.
The transaction is being executed on an arm’s length basis and does not involve any amalgamation or merger, thereby exempting compliance under Regulation 37A of SEBI LODR Regulations.
The deal is expected to streamline NLCIL’s business structure by creating a pure-play renewable energy subsidiary focused on expanding its green energy footprint in India.

This strategic hive-off supports NLCIL’s commitment to renewable energy growth and aligns with India’s broader clean energy transition goals under the government’s energy diversification roadmap.

Sources: BSE Filing, NSE Announcement, Company Press Release, Ministry of Coal Approval Note.

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