Global Tech Faces UN Call AI Data Centers Must Go 100 Percent Renewable by 2030
A recent exemption granted to a public sector lignite utility is expected to fast-track the development of large-scale renewable energy infrastructure in India, bypassing earlier investment limitations and enabling greater financial flexibility. According to an official release, the move allows the firm and its renewable subsidiary to exceed the standard 30% net worth ceiling on investments, previously enforced under Department of Public Enterprises (DPE) guidelines.
The exemption is seen as a strategic step to accelerate India’s transition to a low-carbon economy, aligning with national climate commitments. The renewable platform, formed to house the green assets of the parent company, will now oversee the development, operation, and bidding for clean energy projects. Officials confirmed that existing renewable projects totalling 2 GW—either commissioned or nearing completion—will be transferred to this dedicated arm, which will serve as the flagship vehicle for future expansion. This operational shift aligns with India’s broader goal of building 500 GW of non-fossil fuel energy capacity by 2030, as announced under the “Panchamrit” agenda at COP26. The public sector firm has already set a target of installing 10.11 GW of renewable energy capacity by the end of this decade, with plans to scale this up to 32 GW by 2047.
The exemption is expected to significantly enhance financial agility and remove bureaucratic hurdles that often slow down clean energy deployment. Analysts believe such policy reforms can improve investor confidence and help central public sector enterprises (CPSEs) compete more effectively in the capital-intensive renewable sector. With the new flexibility, the renewable arm will be better positioned to participate in upcoming competitive bids and project auctions. Experts have highlighted that strengthening the role of public sector players in renewable energy can contribute to long-term grid reliability while reducing dependency on imported coal. The expansion is likely to support the government’s 24×7 power supply vision, particularly by boosting decentralised generation and storage capacity across states with high demand.
In addition to environmental benefits, the green energy build-out is anticipated to generate substantial employment during construction and operational phases. Authorities estimate that the transition will not only foster regional development but also promote equitable growth by creating job opportunities in remote and rural areas. By allowing greater financial freedom, the government aims to unlock the untapped potential of existing public enterprises in advancing India’s energy transition. Observers note that the move could become a template for similar exemptions across other strategic CPSEs engaged in clean energy deployment, ultimately enabling faster progress toward net-zero emissions by 2070.
With this shift, India reinforces its position as a leading global voice on sustainable energy, while also addressing pressing domestic concerns around fossil fuel dependence and power supply resilience. The decision marks a critical step in bridging the gap between climate targets and actionable project delivery on the ground.
