India OKs NLC India’s INR 7,000 crore investment in renewables unit

This will be made following the approval of the exemption from investment guidelines.

India has exempted NLC India Limited (NLCIL) from existing guidelines applicable to Navratna Central Public Sector Enterprises (CPSEs), allowing it to invest INR 7,000 crore to renewable energy.

According to the Cabinet Committee on Economic Affairs, the INR 7,000 crore will be injected into NLC India Renewables Limited (NIRL), which will use the amount to fund various projects directly or through the formation of joint ventures, without the requirement of prior approval under the existing delegation of powers.

“This investment is further exempted from the 30% net worth ceiling stipulated by the Department of Public Enterprises (DPE) for overall investment by CPSEs in JVs and Subsidiaries providing NLCIL and NIRL greater operational and financial flexibility,” the committee said.

The exemptions aim to support NLCIL goal to develop 10.11 gigawatts (GW) of renewable energy capacity by 2030, expanding this to 32 GW by 2047.

NLCIL is operating seven renewable energy assets with a total installed capacity of 2 GW, which are either operational or close to commercial operation. These assets will be transferred to NIRL pursuant to this Cabinet approval.