In a major move to boost public investment in India’s renewable energy sector, the Union Cabinet has approved state-owned NTPC Ltd to invest up to Rs 20,000 crore in its subsidiary NTPC Green Energy Ltd, an amount earlier limited to Rs 7,500 crore.
The Cabinet Committee on Economic Affairs (CCEA) on Wednesday also made certain exemptions to allow NLC India Ltd to invest Rs 7,000 crore in its subsidiary NLC India Renewables Limited (NIRL).
The enhancement of NTPC’s investment limit in its subsidiary NTPC Green Energy comes months after the latter launched its initial public offering (IPO) in November 2024, with an issue size of Rs 10,000 crore. Currently, NTPC Green Energy has a portfolio of roughly 32 gigawatts (GW) of renewable energy assets, of which 6 GW is operational, 17 GW has been awarded, and another 9 GW is in the pipeline.
“The enhanced delegation given to NTPC and NGEL (NTPC Green Energy) will facilitate accelerated development of renewable projects in the country,” a Press Information Bureau (PIB) release on the decision said. NTPC, India’s largest player in the thermal sector under the Ministry of Power, aims to add 60 GW of renewables by 2032.
NLC India, a central public sector undertaking under the Ministry of Coal, is primarily engaged in mining lignite used as feedstock in thermal plants. Lately, it has ventured into renewables too, with an installed capacity of 2 GW. The CCEA’s decision will allow it to infuse Rs 7,000 crore as capital in its renewables subsidiary NIRL as part of its bid to expand its installed portfolio to 10.11 GW by 2030 and 32 GW by 2047.
“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,” another PIB release said.
India aims to reach 500 GW of non-fossil energy capacity, including nuclear, large hydro, and renewables, by 2030. As of June 30, the share of non-fossil fuel sources in its total installed capacity of 485 GW has overtaken thermal and stands at 50.1 per cent.
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