Cabinet clears investment flexibility for NLCIL and NTPC

The Cabinet Committee on Economic Affairs (CCEA) has approved key exemptions and enhanced investment powers for NLC India Limited (NLCIL) and NTPC Limited to accelerate renewable energy capacity addition.

NLCIL has been granted exemption from existing Navratna CPSE investment limits, enabling it to invest Rs 7,000 crore in its wholly owned subsidiary, NLC India Renewables Limited (NIRL). This includes further investments by NIRL in renewable energy projects directly or via joint ventures, without requiring prior approval. The exemption also overrides the Department of Public Enterprises’ cap that limits CPSE investment in subsidiaries and JVs to 30% of net worth.

This move supports NLCIL’s target to develop 10.11 GW of renewable energy capacity by 2030 and 32 GW by 2047. Currently, the company operates 2 GW of renewable assets, which will be transferred to NIRL as part of the restructuring. NIRL will serve as NLCIL’s primary platform for bidding, building, and operating green energy projects.

Alongside, the Cabinet has extended enhanced investment powers to NTPC Limited, raising its existing limit from Rs 7,500 crore to Rs 20,000 crore for investments in NTPC Green Energy Limited (NGEL) and its subsidiaries, including NTPC Renewable Energy Limited (NREL).

NTPC is targeting 60 GW renewable energy capacity by 2032, as part of its contribution to India’s national target of achieving 500 GW of non-fossil capacity by 2030 and net-zero emissions by 2070. NGEL currently has a total renewable energy portfolio of 32 GW, including 6 GW operational, 17 GW contracted or awarded, and 9 GW in the pipeline.

These decisions are expected to accelerate clean energy deployment, reduce dependence on fossil fuels, and strengthen 24×7 power supply nationwide. Both initiatives will also generate local employment during construction and operations, support MSMEs, and promote inclusive economic growth.