Enhanced Investment Limits for NTPC, NLCIL Signal Strong Backing for PSU Driven RE Additions

The move by the Union Cabinet to enhance the limits and autonomy of these key power sector PSUs signals the continued expectations for these firms to help deliver on the national goals for renewable capacity additions.

17 Jul 2025 11:13 IST

Close on the heels of the enhancement of investment limits for national power generator NTPC to ₹ 20,000 crores, the Union Cabinet has approved ₹7,000 Cr investment exemption for NLCIL. This allows NLCIL to invest ₹7,000 crore in its green energy arm NLC India Renewables Ltd. (NIRL) without prior approvals. NLCIRL is looking at targeting RE capacity of 32 GW by 2047, and 10.11 GW by 2030. For the South India-based NLCIL, the enhancement is a reward for a solid performance on the renewable capacity front, where it has built significant capacity of over 2 GW over the past 3 years. It was also the first CPSE to cross the 1 GW solar milestone.

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The move also enables the transfer of 2 GW of renewable assets to NIRL and participation in bidding for new RE projects.

NTPC Enhancement

Earlier, the enhanced investment autonomy forNTPC Limited allowed the maharatna PSU to invest up to ₹20,000 crore in its renewable energy subsidiaries—NTPC Green Energy Ltd (NGEL) and its downstream arms, including NTPC Renewable Energy Ltd. (NREL) and joint ventures.

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The earlier investment cap was ₹7,500 crore. NTPC has a stated goal of adding 60 GW of renewable capacity by 2032, forming a key component of India’s broader climate goals.

NGEL, a listed subsidiary and the spearhead of NTPC’s renewable operations, currently manages a renewable portfolio of approximately 32 GW. This includes a near-6 GW operational capacity, a near-17 GW of contracted or awarded capacity, and a near-9 GW in the pipeline.

Much of NGEL’s future organic growth will be driven through NTPC Renewable Energy Ltd (NREL), its wholly owned subsidiary. Additionally, NGEL has established strategic partnerships with various state governments and public sector enterprises for project development across solar, wind, hybrid, and storage technologies.

The announcement comes as India crosses a significant threshold in its energy transition journey: 50% of its installed power capacity now comes from non-fossil fuel sources, five years ahead of its original 2030 target under the Paris Agreement’s Nationally Determined Contributions (NDCs).

Further Announcements

Similar announcements are expected for other key firms in the power sector in due course, especially firms in the financing, transmission, and other related sectors. Even oil & gas firms might see more leeway to invest in renewable energy soon.

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