NLC India Board approves Rs 3,720 crore investments in various renewable projects

State-owned NLC India Ltd’s board of directors has approved key initiatives to expand its renewable energy portfolio and support subsidiary operations. In its meeting, the board granted in-principle approval to invest up to Rs 3,720 crore in its wholly-owned subsidiary, NLC India Renewables Ltd (NIRL).

This investment, to be made in tranches, will fund various renewable energy projects in Gujarat and Rajasthan, subject to regulatory approvals. Additionally, NLC India will acquire renewable energy assets, valued at Rs 6,263 crore as of September 30, 2024, by subscribing to equity shares of NIRL under its Asset Monetisation Plan. The shares will be acquired at face value.

 

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The Board also approved issuing Letters of Comfort to four subsidiaries — NIRL, NLC India Green Energy Ltd, Neyveli Uttar Pradesh Power Ltd, and NLC Tamil Nadu Power Ltd — for their borrowing requirements. These support measures will not impact NLC India directly but will be managed within its borrowing power and credit rating framework.

Prasanna Kumar Motupalli, Chairman and MD of NLC India, stated that the company aims for major capacity expansion in line with the NEP. “As of date, our total capacity is 6-gigawatt (GW) and out of that, 1.4 GW is renewables. So, we have 24% renewable capacity as of date and by 2030 we are targeting to become a 20 GW company; 10 GW conventional capacity and 10 GW renewable capacity. So, our proportion of renewables will be more than 50% by 2030 that is our target capacity addition," he said.

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The state-owned company also plans to double its mining capacity to 100 million metric tonne by 2030, including a key acquisition. The company's regulated equity is expected to rise from Rs 7,800 crore to Rs 23,000 crore by 2030. Shares of NLC India Ltd ended at Rs 237.00, up by Rs 2.85, or 1.22% on the BSE.

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