Daijiworld Media Network - New Delhi

New Delhi, Jul 16: In a significant push toward India’s renewable energy ambitions, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved a special exemption for NLC India Limited (NLCIL), allowing it to invest Rs 7,000 crore into its green energy arm without adhering to the usual investment restrictions for Navratna CPSEs.

The exemption will allow NLCIL to invest directly into its wholly owned subsidiary, NLC India Renewables Limited (NIRL), which can then invest in renewable energy projects independently or through joint ventures—without needing prior approvals that are normally mandatory under the current delegation of powers.

Additionally, the Cabinet has waived the 30% net worth investment cap set by the Department of Public Enterprises (DPE), giving both NLCIL and NIRL greater financial and operational flexibility.

This decision is part of a broader strategy to support NLCIL’s renewable energy roadmap, which includes scaling up to 10.11 GW by 2030 and a long-term goal of reaching 32 GW by 2047.

The move aligns with India’s COP26 commitments and the national “Panchamrit” targets, which include building 500 GW of non-fossil fuel energy capacity by 2030 and achieving Net Zero emissions by 2070.

NLCIL currently manages seven renewable energy assets totaling 2 GW, all of which will be transferred to NIRL as part of this green transition. NIRL is being developed as the core vehicle for NLCIL’s renewable ambitions and is expected to actively participate in new project bids and clean energy partnerships.

The approval is not only expected to cut fossil fuel dependence and reduce coal imports but also to bolster India's energy security with more reliable 24x7 green power.

Besides environmental gains, the initiative is projected to generate substantial employment opportunities during both construction and operational phases, supporting economic inclusion and development in local communities.