An official statement said NTPC has been allowed to invest up to Rs 20,000 crore in its clean energy subsidiary NTPC Green Energy Limited (NGEL). A similar concession is given to NLC India which can now infuse Rs 7,500 crore equity in its subsidiary NLC India Renewables Limited (NIRL).
“The Cabinet approval allows NTPC and NLC India to raise funds and infuse equity in their subsidiaries,” Union Information Broadcasting Minister Ashwini Vaishnaw said Wednesday.
Responding to a query on whether the funds can be used for nuclear energy deployment as well, he said, “The approval is for all non-fossil fuel investments.”
NTPC’s aim of 60 gigawatt (GW) of renewable energy capacity by 2032 is seen as a key contributor in achieving India’s 500-GW target of 2030. NLC India targets developing 10.1 GW of renewable energy capacity by 2030 and expanding to 32 GW by 2047.
Dhan-Dhaanya Krishi Yojana
In addition to these, the Union Cabinet also gave its nod to the Prime Minister Dhan-Dhaanya Krishi Yojana. It will be applicable for six years, beginning 2025-26, to cover 100 districts. It draws inspiration from NITI Aayog’s Aspirational District Programme, focusing exclusively on agriculture and allied sectors, an official statement said.Enhancing agricultural productivity, increasing adoption of crop diversification and sustainable agricultural practices are among the goals. Augmenting post-harvest storage at the panchayat and block levels, improving irrigation facilities and facilitating availability of long-term and short-term credit are also the deliverables.“The scheme will be implemented through convergence of 36 existing ones across 11 Departments, other State schemes and local partnerships with the private sector,” the statement said.
NIRL Listing
The NLC investment is further exempt from the 30% net worth ceiling stipulated by the Department of Public Enterprises (DPE) for overall investment by central public sector enterprises (CPSEs) in joint ventures and subsidiaries. This is expected to provide NLCIL and NIRL greater operational and financial flexibility.
Officials said all of NLC India’s renewable energy assets will be transferred to NIRL. “The NLC India Board plans to list NIRL on the exchanges, parting up to 49% equity in tranches,” an official aware of the plan told ET.
NLC India has seven renewable energy assets with a total installed capacity of 2 GW, which are either operational or close to commercial operation.
