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Updated: July 16, 2025 20:21
In a move that would decisively drive India's shift towards clean energy, the Union Cabinet has approved ₹7,000 crore investment by Navratna firm NLC India Ltd (NLCIL) in its wholly owned subsidiary NLC India Renewables Ltd (NIRL). The approval carries a rare exception from investment rules that otherwise bind Navratna public sector enterprises.
Investment Exemption: Enabling Strategic Flexibility
The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, cleared NLCIL:
- Autonomy from the 30 percent net worth threshold established by the Department of Public Enterprises
- Exemption from the requirement of advance government clearances for subsidiary and joint venture investments
- Autonomy to operate NIRL independently to bid on renewable projects and have strategic alliances.
Renewable Growth: Scaling for a Sustainable Future
The ₹7,000 crore infusion would be the beginning of NLCIL's ambitious green energy project:
- Reaching 10.11 GW of renewable capacity by 2030 and 32 GW by 2047
- Transfer of seven renewable installations (2 GW) to NIRL
- Focus on solar, wind, hybrid, and battery systems for storage in India
National Impact: Harmonizing with COP26 and Net Zero Goals
This action aligns with India's commitment to commission 500 GW of non-fossil fuel capacity by 2030 and reach net-zero carbon emissions by 2070. Other advantages are:
- Reduction in dependence on coal and fuel imports - Enhanced reliability of continuous power supply - Job creation at construction and operating phases.
Sources: Fortune India, Economic Times, Zee Business, Business Standard, Times of India