NLC India Moves A step Closer to Listing Green Energy Subsidiary

NLC India’s Board of Directors has considered and granted in-principle approval for the listing of NLC India Renewables Limited (NIRL), a subsidiary of NLC India Limited. In a regulatory filing, the company stated that this move aligns with the Indian government’s National Monetisation Pipeline targets and will be carried out through the dilution of up to a 25% equity stake in one or more tranches via a public offer, subject to obtaining the requisite approvals from the competent authorities. NLC has been among the earliest movers in the PSU space when it comes to adding solar to its energy mix, making considerable headway vis a vis peers. 

The company has also granted in-principle approval to invest up to Rs. 66.60 crore, in one or more tranches, in its subsidiary NLC India Renewables Limited (NIRL), by way of subscription to equity shares at face value. This investment is subject to necessary statutory approvals, if any, and will be used to fund green energy projects to be executed through joint venture companies.

The latest announcement aligns with the company’s plans to launch an initial public offering (IPO) in the first half of 2026. The company has indicated that the funds raised will be used alongside internal accruals and international financing. It is also currently in the process of transferring assets worth Rs. 6,500 crore to Rs. 7,000 crore to NIRL.

About the Latest Funding

NLC India said the in-principle approval would be communicated to the Ministry of Coal for onward submission to the Department of Investment and Public Asset Management (DIPAM) for further approval, for funding green energy projects to be undertaken by NIRL through joint venture companies.

Aligning With NLC India’s Renewable Energy Target

The latest announcement aligns with the company’s plan to triple its total capacity by 2030 and increase its renewable energy capacity sevenfold. Prasanna Kumar spoke about this during an investor call, about the company's requirement of around Rs. 1.17 lakh crore in funding through two main sources. 

He explained that NLC India plans to mobilise funds through internal resources, with a 70:30 debt-equity ratio for conventional thermal power stations and an 80:20 ratio for renewable energy projects. The company also plans to monetise its assets through its subsidiary, NIRL.

SJVN Versus NLC Renewable Energy Targets

As of date, NLC India has added around 1.5 GW of renewable energy capacity, largely from solar, with a smaller portion of around 51 MW from wind. That compares to a total solar portfolio of 1 GW that is operational with another PSU, SJVN, for instance, 

Currently, renewables account for 26% of the NLC India's total capacity. NLC India said its corporate plan is to increase this share to 51%, scaling up renewable capacity from the present 1,500 MW to 10 GW—almost a sevenfold increase. The company noted that while many players in India and globally are targeting doubling or tripling their capacity, NLC India is aiming to increase its renewable capacity by seven times.

Interestingly, SJVN, a listed Renewable Energy Implementing Agency under the Ministry of New and Renewable Energy, has cumulatively floated tenders for a total capacity of 19.8 GW to date. Letters of Award have been issued for 13.74 GW, and power sale agreements have been signed for 3.74 GW.

The company currently has 13 operational projects with a combined capacity of 3,146 MW and two transmission lines. It is currently constructing four hydro projects with a total capacity of 1,558 MW, one thermal power project of 1,320 MW, and 14 solar projects totalling 2,213 MW. This brings the company’s total under-construction portfolio to 5,091 MW.