India Cabinet Boosts Renewable Energy With Rs 27000 Crore Investment For NTPC NLC
India, in a significant move to accelerate public investment in the country’s burgeoning renewable energy sector, the Union Cabinet has approved substantial financial boosts for state-owned power entities. The Cabinet Committee on Economic Affairs (CCEA) on Wednesday permitted NTPC Ltd to invest up to Rs 20,000 crore in its subsidiary NTPC Green Energy Ltd, a sharp increase from the earlier limit of Rs 7,500 crore. Concurrently, the CCEA granted specific exemptions to NLC India Ltd, allowing it to infuse Rs 7,000 crore into its wholly-owned subsidiary, NLC India Renewables Limited (NIRL), further propelling India’s clean energy transition.
This enhanced delegation of financial powers is pivotal for NTPC’s ambitious targets for renewable energy expansion. It will enable NTPC to infuse critical capital into NTPC Green Energy Limited (NGEL) and its various subsidiaries and joint ventures, crucial for the group’s objective of achieving a 60 GW renewable energy capacity by 2032. This significant capacity addition will contribute substantially to India’s national target of 500 GW of non-fossil fuel energy capacity by 2030. Government statements affirm that this accelerated development of renewable projects will strengthen the power infrastructure, ensuring reliable, round-the-clock electricity access across the nation.
For NLC India, the Rs 7,000 crore investment in NIRL is integral to its plan to expand its installed renewable portfolio to 10.11 GW by 2030 and a robust 32 GW by 2047. The special exemptions granted to NLC India Renewables Limited provide greater operational and financial flexibility, enabling NIRL to invest directly in projects or through joint ventures without needing prior approvals. This strategic funding aligns perfectly with India’s commitments under the Paris Agreement and its long-term goal of achieving net-zero emissions by 2070, reinforcing the nation’s position as a global leader in green energy initiatives.
These substantial investments by public sector enterprises underscore India’s unwavering commitment to sustainable energy development and climate action. By accelerating renewable capacity addition, the government aims to bolster energy security, create green jobs, and reduce carbon footprint. This strategic push is crucial for building a resilient, eco-friendly, and economically vibrant future for the nation.
