The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved a special exemption for NLC India Limited (NLCIL), allowing the Navratna Central Public Sector Enterprise (CPSE) to invest ₹7,000 crore in its wholly owned subsidiary, NLC India Renewables Limited (NIRL), bypassing the standard investment restrictions applicable to Navratna CPSEs.
Under the exemption, NLCIL and NIRL are no longer bound by the 30% net worth cap stipulated by the Department of Public Enterprises (DPE) for investments in joint ventures (JVs) and subsidiaries. The approval enables NLCIL to fund projects directly or via JVs through NIRL, without requiring prior government approval, significantly enhancing operational and financial flexibility.
This strategic move is aimed at accelerating NLCIL’s roadmap to develop 10.11 GW of renewable energy capacity by 2030, with a long-term goal of expanding to 32 GW by 2047. The decision is closely aligned with India’s COP26 commitments to achieve 500 GW of non-fossil fuel capacity by 2030 and attain Net Zero emissions by 2070, under the “Panchamrit” climate action framework.
NLCIL currently operates seven renewable energy assets with a combined capacity of 2 GW, all of which are either functional or nearing commercial operation. These assets will now be transferred to NIRL, which has been envisioned as the flagship platform for spearheading NLCIL’s green energy initiatives. NIRL is also actively exploring participation in competitive bidding for future renewable energy projects.
The exemption is expected to propel India’s transition toward a low-carbon economy by reducing dependence on fossil fuels, cutting coal imports, and enhancing the reliability of round-the-clock clean energy supply across the country.
In addition to environmental benefits, the investment is projected to generate substantial employment opportunities—both direct and indirect—during the construction and operational phases, supporting inclusive growth and benefiting local communities.
This Cabinet decision marks another key milestone in India’s green energy journey and reinforces its global leadership in climate action and renewable energy deployment.
About NLC India
NLC India Limited (NLCIL), formerly known as Neyveli Lignite Corporation, is a Navratna Central Public Sector Undertaking under the Ministry of Coal, Government of India. Established in 1956, NLCIL is headquartered in Neyveli, Tamil Nadu, and specializes in lignite mining and power generation, including thermal, solar, and wind energy.
