NLC India to invest Rs 16.3 billion in renewables arm

NLC India Limited has approved an equity investment of up to Rs 16.30 billion in its wholly-owned subsidiary, NLC India Renewables Limited (NIRL). The in-principle approval is subject to clearances from the Department of Investment and Public Asset Management (DIPAM) and other relevant authorities.

The funds will support NLC’s ongoing renewable energy projects under NIRL. The company is also planning to transfer 1.4 GW of its operational renewable assets to NIRL. This portfolio will then be monetised to raise around Rs 40 billion.

NLC currently has 1,431 MW of installed renewable energy capacity.

In another development, NLC’s board has approved a USD 100 million term loan in Japanese yen from Sumitomo Mitsui Banking Corporation. The loan, raised through the external commercial borrowing (ECB) route, will be used to meet capital expenditure needs.

Last week, NLC secured a Letter of Award to develop 450 MW of Inter-State Transmission System (ISTS)-connected wind-solar hybrid projects. These projects will be located in Rajasthan and Gujarat.