NLCIL gets approval to invest 7000 Crore in NIRL bypassing Navratna norms

State-owned NLC India Ltd gets approval by the Cabinet Committee on Economic Affairs chaired by the Prime Minister, a special exemption from the prevailing investment guidelines applicable to Navratna Central Public Sector Enterprises (CPSEs).

This strategic decision would make NLCIL to invest Rs.7,000 Crore in its wholly owned subsidiary, NLC India Renewables Limited (NIRL) and in turn NIRL investing in various projects directly or through formation of Joint Ventures, without the requirement of prior approval under the existing delegation of powers.

Further this investment will be 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.

This exemption would support NLCIL’s ambitious target of developing 10.11 GW of Renewable Energy (RE) capacity by 2030 and expanding this to 32 GW by 2047.

Currently, NLCIL operates 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.

NIRL, which is backed as NLCIL’s green energy initiatives, is actively exploring fresh opportunities across the renewable energy sector, including participation in competitive bidding for new projects.

The approval is expected to reinforce India’s position as a green energy leader by reducing dependence on fossil fuels, lowering coal import, and enhancing reliability of 24x7 power supply across the country.