Green Mandate: NLC India Gets Cabinet Boost for ₹7,000 Crore Renewable Push

Image Source: Business Standard

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