Cabinet Approves ₹7000 Crore Investment Exemption for NLCIL to Boost Renewable Energy Push
New Delhi, July 16: In a major move to accelerate India’s clean energy transition, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has granted a strategic exemption to NLC India Limited (NLCIL), allowing it to invest ₹7,000 crore in its renewable energy subsidiary without prior approval.
The decision, announced by the government on Wednesday, provides NLCIL an exemption from existing investment guidelines applicable to Navratna Central Public Sector Enterprises (CPSEs), including the 30% net worth ceiling stipulated by the Department of Public Enterprises (DPE) for investments in subsidiaries and joint ventures.
According to the official release, this exemption enables NLCIL to invest ₹7,000 crore in NLC India Renewables Limited (NIRL)—its wholly owned subsidiary—and in turn empowers NIRL to invest directly or via joint ventures in renewable energy projects without seeking prior government clearance. The move is aimed at granting both NLCIL and NIRL enhanced operational and financial flexibility in a rapidly evolving energy landscape.
The CCEA said this green light is part of a broader strategy to support NLCIL’s ambitious goal of establishing 10.11 GW of renewable energy (RE) capacity by 2030, and scaling it up to 32 GW by 2047. This aligns with India’s international climate commitments made at the COP26 Summit under the “Panchamrit” framework and the national target of achieving Net Zero emissions by 2070.
Currently, NLCIL operates seven RE assets totaling 2 GW, either functional or nearing commercial operations. These assets will be transferred to NIRL, which has been positioned as the key platform for driving the group’s green energy initiatives. The release stated that NIRL is actively exploring fresh opportunities, including participation in competitive bidding for new renewable energy projects.
The government emphasized that this decision not only boosts India’s clean energy credentials but also reduces dependence on fossil fuels, curbs coal imports, and enhances the reliability of 24×7 power supply. It also has significant socioeconomic implications. “The initiative is expected to generate substantial direct and indirect employment during construction and operation phases, contributing to local development and inclusive growth,” the CCEA noted.
With this decision, India continues to reinforce its leadership position in the global renewable energy sector while advancing toward a low-carbon, self-reliant economy.
