New Delhi (Economy India): In a landmark decision aimed at propelling India’s green transition, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved investment-related relaxations for NLC India Limited (NLCIL), a Navratna Central Public Sector Enterprise (CPSE), to enable rapid scaling of its renewable energy portfolio.
Under this special exemption, NLCIL has been allowed to invest ₹7,000 crore in its wholly owned subsidiary NLC India Renewables Limited (NIRL). Crucially, this investment can now be made without the requirement of prior approvals that are typically mandated under the delegation of powers applicable to CPSEs. The move is expected to streamline and expedite NLCIL’s renewable energy deployment through both direct investments and joint ventures.
📊 A Strategic Policy Shift
Traditionally, CPSEs are restricted by Department of Public Enterprises (DPE) guidelines, which cap total investment in subsidiaries or joint ventures at 30% of the net worth. However, the Cabinet’s recent approval exempts NLCIL from this ceiling, granting it more financial autonomy and operational speed — both critical in the fast-evolving renewable energy sector.
By empowering NIRL, the government aims to consolidate all green energy operations under one umbrella and transform it into an aggressive market participant capable of executing large-scale solar and wind projects across the country.
🎯 Green Goals: Vision 2030 and Beyond
The approved investment is aligned with NLCIL’s ambitious roadmap to:
- Achieve 10.11 GW of renewable energy capacity by 2030
- Expand that capacity to 32 GW by 2047, the year marking India’s 100 years of independence
- Contribute significantly to India’s commitment under the Panchamrit framework announced at COP26 in Glasgow
India has pledged to install 500 GW of non-fossil fuel energy capacity by 2030, and to achieve net-zero carbon emissions by 2070. The government views CPSEs like NLCIL as strategic instruments in meeting these long-term national and international climate obligations.
⚙️ Operational Impact: From Fossil Fuels to Green Power
Currently, NLCIL operates 7 renewable energy assets totaling 2 GW, either in commercial operation or nearing completion. With the Cabinet’s nod, these assets will be transferred to NIRL, which will now become the main vehicle for future green expansion.
NIRL is actively exploring:
- Competitive bidding for new solar and wind energy projects
- Strategic joint ventures for technology collaboration
- Geographic diversification to optimize land and solar irradiance conditions
This organizational consolidation and investment freedom are expected to significantly enhance execution efficiency, project turnaround time, and financial flexibility.
🌱 Broader Impact: Climate, Jobs, and Energy Security
Beyond environmental gains, this initiative is expected to generate thousands of jobs, both directly and indirectly, during project construction and operations. Local communities are likely to benefit through employment, infrastructure, and economic activity.
Furthermore, by reducing dependence on coal-based power and curbing imported fossil fuel consumption, this move strengthens India’s energy security while supporting 24×7 power supply through diversified clean sources.
“This is more than just an investment decision. It’s a statement of intent from India to lead the global clean energy transition,” said a senior energy policy analyst.
The Cabinet’s decision to grant investment exemptions to NLCIL marks a bold and timely policy intervention. As India navigates its energy transition amid economic growth, such decisions ensure that key public sector players are empowered to act swiftly and strategically. NLCIL’s expanded role through NIRL not only boosts India’s domestic renewable energy output but also signals the country’s firm commitment to a sustainable and resilient future.
(Economy India )
Source (PIB)
