The Cabinet Committee on Economic Affairs, chaired by the Prime Minister, has approved a strategic exemption allowing NLC India Limited (NLCIL) to bypass existing investment restrictions applicable to Navratna Central Public Sector Enterprises (CPSEs). This enables NLCIL to invest ₹7,000 crore in its wholly owned subsidiary, NLC India Renewables Limited (NIRL), which will further invest in renewable energy projects directly or through joint ventures—without the need for prior government approval. This investment is also exempted from the Department of Public Enterprises’ 30% net worth cap on investments in subsidiaries and joint ventures, providing greater financial and operational autonomy.
This decision supports NLCIL’s ambitious goal to develop 10.11 GW of renewable energy capacity by 2030, scaling up to 32 GW by 2047. The move is aligned with India’s COP26 commitments under the “Panchamrit” strategy, which includes building 500 GW of non-fossil fuel energy capacity by 2030 and reaching Net Zero emissions by 2070.
As a key Navratna CPSE, NLCIL is positioned to play a vital role in India’s clean energy transition. The current renewable energy portfolio of 2 GW, comprising seven projects, will be transferred to NIRL, which will serve as the central platform for NLCIL’s green energy initiatives. NIRL is actively pursuing new opportunities, including competitive project bids in the renewable sector.
This approval not only strengthens India’s leadership in green energy and reduces reliance on fossil fuels and coal imports, but also ensures enhanced power supply reliability. Additionally, it is expected to create considerable direct and indirect employment during both construction and operational phases, thereby promoting inclusive and sustainable economic growth.
