The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, granted special exemption from investment restrictions—including the 30% net worth cap imposed by the Department of Public Enterprises—according to an official statement.
The move offers NLCIL and its green arm greater financial and operational flexibility to pursue clean energy projects, either directly or through joint ventures.
The exemption is expected to fast-track NLCIL’s plans to expand its renewable energy capacity to 10.11 GW by 2030 and further to 32 GW by 2047—aligned with India’s COP26 pledge and its Net Zero emissions target for 2070.
Currently, NLCIL operates seven renewable assets with a total capacity of 2 GW. These assets—either operational or nearing commissioning—will be transferred to NIRL as part of the ongoing restructuring. NIRL will serve as the company’s flagship platform for all future renewable energy investments and participate in competitive project bids.
Officials said the decision not only supports India’s target of 500 GW of non-fossil capacity by 2030 under the “Panchamrit” climate agenda but also enhances energy security by reducing coal reliance and enabling 24×7 reliable power.
Beyond environmental benefits, the initiative is expected to generate significant employment during both the construction and operational phases—boosting local economies and fostering inclusive development.
