Chennai: In a significant move toward expanding its renewable energy footprint, state-owned NLC India Limited (NLCIL) has granted in-principle approval for an investment of up to ₹1,630.89 crore in its wholly owned subsidiary, NLC India Renewables Limited (NIRL). The decision was made during the company’s recent Board meeting, reflecting NLCIL’s ongoing commitment to accelerate the development of green energy assets across India.
The investment will be made in one or more tranches through the subscription of equity shares at face value, and is subject to approvals from the Department of Investment and Public Asset Management (DIPAM) and other regulatory authorities as required.
Investment to Fund Key Green Projects
The approved capital infusion will support NIRL’s upcoming renewable energy projects, ensuring adequate funding for their development and commissioning. These include solar and wind power projects aligned with India’s national goal of reaching 500 GW of non-fossil fuel energy capacity by 2030.
With this step, NLCIL continues to diversify its energy portfolio beyond lignite mining and thermal power, and further consolidate its position in the renewables sector.
$100 Million Loan Secured for CAPEX Funding
In parallel to the equity investment, NLC India has also announced the successful arrangement of a term loan equivalent to USD 100 million (in Japanese Yen) from Sumitomo Mitsui Banking Corporation (SMBC). The loan has been secured under the External Commercial Borrowing (ECB) framework.
This capital will be used for capital expenditure (CAPEX) related to renewable energy projects undertaken by NLCIL through its subsidiaries and group companies. The move is expected to improve financial flexibility and access to low-cost international capital for green initiatives.
Market Reaction
Following the announcement, shares of NLC India rose by 0.28%, indicating a positive market response to the company’s proactive shift toward renewable energy and strategic capital planning.
The company has already made strides in renewable energy, operating over 1,400 MW of green capacity, with several new projects in the pipeline including hybrid energy parks and floating solar ventures.
A Green Future for NLC India
This investment underscores NLCIL’s long-term strategy to become a major player in India’s renewable energy space, aligning with government priorities such as “Viksit Bharat @2047”, energy security, and sustainable development.
The combined effect of equity infusion and international borrowing marks a robust financial framework to support next-generation clean energy assets that will drive both economic and environmental dividends.
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.
