In a key policy move, the Cabinet Committee on Economic Affairs (CCEA), led by Prime Minister Narendra Modi, has granted an exemption to NLC India Limited (NLCIL) from existing investment rules that typically apply to Navratna Central Public Sector Enterprises (CPSEs).
This special clearance allows NLCIL to invest up to ₹7,000 crore in its wholly owned subsidiary, NLC India Renewables Limited (NIRL), without requiring prior government approval under the current delegated powers framework. The decision, announced by the CCEA, also allows NIRL to channel these funds directly into renewable energy projects or through joint ventures.
Significantly, the investment has been exempted from the 30% net worth cap usually imposed by the Department of Public Enterprises (DPE) on CPSE investments in subsidiaries and joint ventures. This move grants both NLCIL and NIRL increased financial and operational flexibility to pursue their renewable energy ambitions.
The relaxed norms are expected to accelerate NLCIL’s plans to scale up its green energy capacity to 10.11 GW by 2030, with a longer-term goal of reaching 32 GW by 2047. These targets are in line with India’s commitments made at the COP26 summit to transition towards a low-carbon economy and meet sustainable development goals.
India has pledged to achieve 500 GW of non-fossil fuel power generation capacity by 2030 and attain net-zero emissions by 2070—milestones outlined under the nation’s “Panchamrit” climate pledge.
NLCIL, a prominent power sector PSU and one of India’s Navratna CPSEs, is set to play a significant role in this clean energy transition. With the new investment, the company aims to broaden its renewable portfolio and actively support both national and global climate action goals.
Currently, NLCIL operates seven renewable power assets totaling 2 GW in capacity, either already functional or nearing commercial operations. Following the CCEA’s approval, these assets will be transferred to NIRL, which has been positioned as NLCIL’s central platform for advancing its green energy strategy.
NIRL is also actively exploring new opportunities in the renewable sector and plans to participate in competitive bids for upcoming projects across the country.
This policy shift is expected to not only support India’s energy transition but also strengthen the reliability of round-the-clock power supply, reduce dependency on coal imports, and cut fossil fuel consumption. Additionally, the initiative is projected to create substantial employment opportunities—both directly during construction and indirectly during operations, thereby contributing to inclusive economic growth and benefiting local communities.
