Union Cabinet Clears ₹7,000 Crore Investment Exemption For NLCIL To Boost Renewable Energy Push

In a landmark decision poised to accelerate India’s clean energy transition, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has granted a special exemption to NLC India Limited (NLCIL) from existing investment guidelines applicable to Navratna Central Public Sector Undertakings (CPSUs).

This strategic move will enable NLCIL to invest up to ₹7,000 crore in its wholly owned subsidiary, NLC India Renewables Limited (NIRL). In turn, NIRL will channel these funds into renewable energy projects—either directly or via joint ventures—without requiring prior approvals as mandated under the current delegation of powers. The Cabinet has also exempted NLCIL from the 30% net worth cap imposed by the Department of Public Enterprises (DPE) for investments in JVs and subsidiaries.

A Major Thrust Toward Energy Transition

The exemptions come as part of India’s broader effort to meet its global climate commitments. NLCIL aims to scale up its renewable energy capacity to 10.11 GW by 2030, and further expand to 32 GW by 2047, in line with India’s Panchamrit climate targets announced at COP26 and its commitment to achieve Net Zero emissions by 2070.

Currently, NLCIL operates seven renewable energy assets with a combined capacity of 2 GW, either fully operational or nearing commercial operation. As part of the Cabinet’s decision, these assets will be transferred to NIRL, which has been envisioned as NLCIL’s flagship green energy platform. NIRL is actively scouting new opportunities in the renewable energy space, including participation in competitive bidding rounds.

Enhancing Energy Security and Economic Growth

The move is expected to bolster India’s position as a global leader in green energy, while also reducing dependence on coal imports and ensuring reliable 24×7 power supply. By removing investment restrictions, the government is enabling greater financial and operational agility for NLCIL to meet India’s long-term renewable energy goals.

In addition to environmental benefits, the initiative is projected to generate substantial employment opportunities—both direct and indirect—during the construction and operation of renewable energy projects. This is likely to positively impact local economies and support inclusive growth across multiple states.

Driving India’s Green Energy Leadership

As a Navratna CPSU and a major player in India’s energy sector, NLCIL’s expanded role in renewable energy development underlines the government’s commitment to fostering a low-carbon economy. The Cabinet’s approval not only paves the way for a greener future but also demonstrates strategic policy support for innovation, sustainability, and economic resilience.