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The Cabinet Committee on Economic Affairs, chaired by the Prime Minister, has given special relief to NLC India Limited (NLCIL) to be exempted from general investment rules for Navratna Central Public Sector Enterprises. This clearance enables NLCIL to invest Rs 7,000 crore in its subsidiary company NLC India Renewables Limited (NIRL), which can further invest in projects either directly or through joint ventures without taking prior approval.
The investment is also exempt from the 30 per cent net worth limit for CPSE investment in subsidiaries and joint ventures, providing NLCIL and NIRL with increased financial and operational freedom.
Renewable Revolution: NLCIL's big push for sustainable India
The exemption will allow NLCIL to meet its ambitious renewable energy goals of 10.11 GW capacity by 2030 and 32 GW capacity by 2047. The action is in line with India's COP26 commitments to shifting towards a low-carbon economy and ensuring sustainable development.
It is in support of the nation's commitment to achieve 500 GW of non-fossil fuel energy capacity in 2030, as part of the "Panchamrit" targets, and its net target of Zero emissions by 2070.
NLCIL's vision for sustainable India
Being a power utility leader and Navratna CPSE, NLCIL has an important role to play in India's transition to a low-carbon economy. With this investment, NLCIL intends to build its renewable energy portfolio substantially, aligning with national and international climate objectives and helping usher in a sustainable future.
Renewable Energy Leap: NLCIL's 2 GW capacity to fuel sustainable growth
NLCIL now has seven renewable energy assets with a capacity of 2 GW, which are either in operation or in advanced stages of commercial operation. The assets will get transferred to NLC India Renewables Limited (NIRL) after the Cabinet approval. NIRL, being NLCIL's lead platform for green energy, is seeking new ventures in the renewable space, such as entering competitive bidding for projects, to further increase NLCIL's presence in the renewable energy space.
The clearance is anticipated to further strengthen India as a global green energy leader by lessening fossil fuel dependence, decreasing coal imports, and promoting 24/7 power supply dependability throughout the nation.
Aside from the environmental benefit, the project is anticipated to create substantial direct and indirect employment during the construction and operation of the project, thus benefiting the local population and furthering inclusive economic growth.
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