New Delhi: In a major push towards green energy, the government on Wednesday enhanced the investment limit of state-owned NTPC to Rs 20,000 crore and also allowed public sector NLCIL to pump in Rs 7,000 crore in renewable energy projects.
The enhanced delegation of power will enable NTPC to achieve 60 GW of renewable energy capacity by 2032. The existing investment limit for the Maharatna company’s renewable energy is Rs 7,500 crore.
NLC India Limited (NLCIL) has been permitted to invest Rs 7,000 crore in its wholly-owned subsidiary, NLC India Renewables Ltd (NIRL), which in turn will invest in various projects directly or through joint ventures, without prior approval.
These decisions were taken at the meeting of the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi.
Giving details about the CCEA decisions, I&B Minister Ashwini Vaishnaw said India has achieved a landmark in its energy transition journey by reaching 50 per cent of its installed electricity capacity from non-fossil fuel sources – five years ahead of the target set under its Nationally Determined Contributions to the Paris Agreement.
NTPC will invest in its subsidiary NTPC Green Energy Limited (NGEL). Further, NGEL will invest in NTPC Renewable Energy Limited (NREL) and its other JVs and subsidiaries.
“The enhanced delegation given to NTPC and NGEL will facilitate accelerated development of renewable projects in the country. This move will also play a vital role in strengthening power infrastructure and ensuring investment in providing reliable, round-the-clock electricity access across the nation,” an official release said.
India is aiming to reach 500 GW of non-fossil energy capacity by 2030.
As a Central Public Sector Enterprise (CPSE) and the leading power utility of the country, NTPC aims to add 60 GW of renewable energy capacity by 2032 to help the country achieve the target and move towards a larger aim of having ‘Net Zero’ emissions by 2070.
Regarding NLCIL, another release said the CCEA has provided a special exemption to the company from the prevailing investment guidelines applicable to Navratna CPSEs.
“This strategic decision enables NLCIL to invest Rs 7,000 crore in its wholly-owned subsidiary, NLC India Renewables Limited (NIRL) and in turn NIRL investing in various projects directly or through formation of joint ventures, without the requirement of prior approval under the existing delegation of powers,” it said.
The investment has also been exempted from the 30 per cent net worth ceiling stipulated by the Department of Public Enterprises (DPE) for overall investment by CPSEs in JVs and Subsidiaries providing NLCIL and NIRL greater operational and financial flexibility.
The approval to NLCIL is expected to reinforce India’s position as a green energy leader by reducing dependence on fossil fuels, lowering coal import, and enhancing reliability of 24×7 power supply across the country, the release said.
