INDUSTRIAL ECONOMIST (IE): Do you see an opportunity to sustain your performance in the coming years?
M PRASANNA KUMAR (MPK): Absolutely. We are not only confident of sustaining our current performance but also optimistic of surpassing it in the years ahead. Multiple strategic developments are poised to fuel our upward growth trajectory. Notably, the commissioning of Units 2 and 3 of the Ghatampur Thermal Power Station is scheduled for this year. These additions will enhance our generation capacity, increase power output and contribute to revenue growth. On the renewable energy front, we are set to commission approximately 1.4, GW of green energy capacity within this financial year reinforcing our commitment to sustainable development, and significantly strengthening our non-fossil energy portfolio. Moreover, the ramp-up in coal output from our Pachwara south coal block in Jharkhand will boost fuel availability and positively impact our top line performance. Collectively, these initiatives position us well to maintain strong momentum in both growth and profitability in the foreseeable future.
IE: What is the update on the 2030 Corporate Vision programme? Do you expect your renewable capacity to surpass thermal by then?
MPK: Corporate Plan 2030 is a strategic blueprint that aligns NLC India Ltd with the evolving national energy agenda, particularly India’s goal of achieving net-zero emissions by 2070. This vision is anchored in di versification, sustainability and a progressive shift toward renewable energy. As per the revalidated plan, we anticipate substantial growth across both thermal and renewable sectors. Our current renewable capacity is 1,431 MW, and we are in the process of commissioning an additional 2,110 MW RE capacity, bringing us closer to our mid-term targets. By 2030, we aim to scale renewable capacity to 10 GW, representing nearly a sevenfold increase from current levels alongside an equivalent 10 GW of conventional power generation capacity. This surpasses the national average growth target, which aims to triple renewable capacity by 2030. Our renewable expansion encompasses ground mounted solar, floating solar, wind energy, BESS, PSPs INDUSTRIAL ECONOMIST JUNE 2025 10 COVER STORY and green hydrogen, forming a robust and future-ready energy portfolio. While coal and lignite-based power will continue to ensure grid stability in the near-term, we expect renewable energy to eventually become a dominant share of our generation mix by the end of the decade.
IE: When is NIRL IPO scheduled and how much capital do you expect to raise?
MPK: We are planning to launch the IPO for our renewable energy subsidiary, NLC India Renewables Ltd. (NIRL), in the next financial year. Preparatory processes for the IPO are already in motion and progressing aggressively. Depending on the progress made in fulfilling procedural and regulatory requirements, we are optimistic of advancing the target timeline. We hope to successfully announce the IPO during the upcoming financial year. IE: What is your execution and investment plan for the pumped storage project? MPK: Pumped storage projects (PSPs) play a central role in stabilising renewable generation and enhancing grid reliability. NLC is actively seeking partnerships with state governments to develop PSPs, recognising the complexity of these projects, especially concerning land acquisition, water resource management and integration with existing irrigation systems. We are currently in discussions with the government of Tamil Nadu and exploring a similar initiative in Odisha. Both proposals are in early stages, but we are pursuing them with strong intent, backed by our internal planning and feasibility studies. We are targeting a minimum PSP capacity of 1 GW, subject to site-specific technical and hydrological conditions. The estimated capital cost for these projects ranges between Rs 7 crore and Rs 8 crore per MW, depending on terrain challenges, civil works and electro-mechanical requirements. These investments are integral to our broader strategic vision of creating a balanced and sustainable energy mix.
IE: Could you provide an update on the proposed renewable projects with the Tamil Nadu government, particularly the pumped storage projects?
MPK: Aligned with the government of India’s PSP which encourages proactive CPSU involvement, we have initiated discussions with the government of Tamil Nadu to explore and develop PSPs within the state. Efforts are currently in the preliminary stage, with site identification and technical feasibility evaluations in close collaboration with state authorities. We firmly believe PSPs will play a vital role in managing grid variability as renewable energy penetration rises. While current balancing mechanisms suffice, future grid operations will require scalable and sustainable solutions. In parallel, we are also investing in Battery Energy Storage Systems (BESS) to complement our storage strategy and further strengthen grid resilience. However, from a lifecycle and sustainability standpoint, PSPs offer a more cost-effective and environmentally-sound solution over the long-term. We are targeting PSP integration into our energy portfolio by FY32. IE: What are plans for battery storage and EV charging? MPK: We see BESS and EV charging infrastructure as essential pillars of the evolving clean energy ecosystem. NLCIL pioneered utility-scale BESS in India, having established an 8 MWh system in the Andaman Islands for solar output stabilisation. Building on this, we are actively participating in new tenders in Tamil Nadu and Uttar Pradesh, and we are hopeful of securing projects. We have included several utility-scale BESS projects in our Corporate Plan 2030, with proposed capacities of 20 MWh and 50 MWh as part of our phased approach to grid infrastructure development. This reflects our long-term commitment to grid modernisation. In the EV charging domain, we are adopting a calibrated roll-out strategy. Our initial focus is on setting up pilot charging stations within NLCIL townships and campuses to build operational know-how. Depending on demand growth, policy developments and technology evolution, we aim to scale up nationwide targeting 1500 EV charging stations by 2030 across urban and highway INDUSTRIAL ECONOMIST JUNE 2025 11 COVER STORY corridors. We are also open to collaborations with OEMs, technology providers and charge point operators to build a reliable and user-friendly EV ecosystem.
IE: How will the proposed expansion and diversification shape NLC India’s future?MPK: The expansion and diversification strategies laid out under Corporate Plan 2030 mark a transformational shift from being a lignite-dominant utility to evolving into a diversified, integrated and sustainable energy major. These initiatives are not mere incremental steps. Rather, they represent a strategic repositioning of the company that aligns with India’s national clean energy objectives and the broader global shift toward decarbonisation. At the core of this transition is a multi-pronged approach that includes the rapid expansion of renewable energy through solar, wind, floating solar and hybrid projects. To complement these variable sources of energy, NLCIL is investing significantly in advanced energy storage solutions like BESS and PSPs, thereby strengthening grid reliability and flexibility. In the domain of clean fuels, the company is actively developing green hydrogen and lignite-to-methanol projects, aiming to reduce emissions and provide low-carbon alternatives to conventional fuels. The growing need for sustainable transportation is being addressed through the roll-out of EV charging infrastructure, while the pursuit of long term resilience and technological leadership is supported by forays into critical mineral acquisition and carbon capture, utilisation and storage (CCUS). These diversified initiatives offer several tangible long-term benefits. First, a more balanced and cleaner energy mix will reduce dependency on fossil fuels and enhance national energy security. Second, new business verticals such as methanol production, EV infrastructure and energy trading will contribute to revenue growth and financial stability. Third, the alignment with policy and environmental, social and governance (ESG) frameworks positions NLCIL as a forward-looking enterprise that meets the expectations of regulators, investors and other stakeholders. Fourth, investing in emerging technologies will provide a crucial innovation edge and future-proof the company’s operations. Fifth, the socio-economic impact of these initiatives through job creation, skill development and community development will uplift the regions where NLCIL operates.
IE: By 2030, how do you envision the transformation of NLC India in comparison with its peers?
MPK: By 2030, NLC India Limited will be a diversified, sustainability-focused enterprise, clearly distinguished from its peers in the energy sector. Our transformation is grounded in the dual goal of national net-zero commitments and internal excellence in integrated energy operations. Unlike many sectoral peers who may remain primarily concentrated in thermal or renewable do mains, NLCIL is strategically expanding across the full energy spectrum – mining, thermal, renewables, storage, green fuels and beyond. Our active investments in BESS, PSPs, EV infrastructure, green hydrogen and critical minerals place us ahead in the clean energy race. In terms of capacity, our renewable portfolio is expected to increase nearly sevenfold by 2030, well above the national RE growth average. Our Corporate Plan forecasts a PAT exceeding Rs 5,000 crore and a net worth above Rs 41,000 crore by FY30. These milestones not only underscore our financial strength but also position us to achieve Maharatna CPSE status.