Union Cabinet Approves Investment Exemption for NLC India Enabling INR 7,000 Cr Investment in NIRL
The Cabinet Committee on Economic Affairs has approved a special exemption allowing NLC India to invest INR 7,000 crore in its subsidiary NLC India Renewables (NIRL) without prior approval, boosting its push toward a 32 GW green energy portfolio by 2047.
July 16, 2025. By Mrinmoy Dey
This strategic decision enables NLCIL to invest INR 7,000 crore in its wholly-owned subsidiary, NLC India Renewables Ltd. (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.
This investment is further exempted from the 30 percent 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, noted a statement by the CCEA.
The exemptions aim to support NLCIL’s ambitious target of developing 10.11 GW of Renewable Energy (RE) capacity by 2030 and expanding this to 32 GW by 2047. The approval aligns with India’s commitments made during COP26 for transition toward a low-carbon economy and achieve sustainable development. The country has pledged to build 500 GW of non-fossil fuel energy capacity by 2030 as part of the ‘Panchamrit’ goals and its long-term commitment to achieve Net Zero emissions by 2070.
As a significant power utility and Navratna CPSE, NLCIL is playing a pivotal role in this transition. Through this investment, NLCIL seeks to substantially expand its renewable energy portfolio and contribute meaningfully to national and global climate action objectives.
At present, NLCIL operates seven renewable energy assets with a total installed capacity of 2 GW, which are either operational or close to commercial operation. “These assets will be transferred to NIRL pursuant to this Cabinet approval. NIRL, envisioned as the flagship platform for NLCIL’s green energy initiatives, is actively exploring fresh opportunities across the renewable energy sector, including participation in competitive bidding for new projects,” it said.
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