Cabinet Committee on Economic Affairs (CCEA), has approved a special exemption for NLC India Limited (NLCIL) from investment norms applicable to Navratna CPSEs. This allows NLCIL to invest ₹7,000 crore into its wholly-owned subsidiary, NLC India Renewables Limited (NIRL), without needing prior government approval or adhering to the 30% net worth ceiling.
Key Highlights
| Aspect | Details |
| Entity Involved | NLC India Limited (NLCIL), a Navratna CPSE under Ministry of Coal |
| Investment Freedom Granted | ₹7,000 crore to NIRL, which can further invest directly or via joint ventures |
| Exempted Norms | No need for prior approval and exemption from the 30% net worth ceiling for CPSE investments |
| Strategic Purpose | To enable fast-tracking renewable energy capacity addition |
| Goal of NLCIL | Expand from 2 GW to 10.11 GW RE capacity by 2030 and 32 GW by 2047 |
| Significance | Supports India’s COP26 commitments, including 500 GW non-fossil fuel energy by 2030 |
Parallel Approval for NTPC
- CCEA also enhanced the delegation of power to NTPC, a Maharatna CPSE.
- Now NTPC can invest up to ₹20,000 crore (previously ₹7,500 crore) into its subsidiary NTPC Green Energy Limited (NGEL).
- NGEL and its JV arms like NTPC Renewable Energy Ltd aim to add 60 GW RE capacity by 2032.
Current Status of NLCIL’s Renewable Assets
| Detail | Status |
| Installed RE Capacity | ~2 GW across seven assets |
| Action Post-Approval | These assets will be transferred to NIRL for consolidated green energy operations |
| Future Plans | NIRL to act as flagship green energy arm, participate in bidding & expansion initiatives |
Wider Implications
- Helps reduce dependence on fossil fuels and coal imports.
- Ensures 24×7 power supply reliability by boosting the renewables share in the energy mix.
- Generates employment—both direct and indirect—during project construction and operation.
- Aligns with India’s Net Zero target by 2070 and global climate goals.
About NLC India Limited (NLCIL)
| Parameter | Details |
| Full Name | Neyveli Lignite Corporation India Limited (NLCIL) |
| Status | Navratna CPSE under Ministry of Coal |
| Incorporated | 1956, under Companies Act, 1956 |
| Headquarters | Neyveli, Tamil Nadu |
| Core Activities | Lignite & coal mining, thermal & renewable power generation |
| Current Operations | 4 lignite mines, 1 coal mine, 6 thermal power stations, solar & wind power assets |
| Sustainability Focus | Eco-restoration, rainwater harvesting, emission control, clean mining & CSR projects |
About CCEA
| Aspect | Details |
| Full Form | Cabinet Committee on Economic Affairs (CCEA) |
| Chaired by | Prime Minister of India |
| Function | Deals with major economic policy decisions, including investment approvals, disinvestment, energy, and infrastructure |
India’s Renewable Energy Goals
| Target | Timeline |
| 500 GW non-fossil fuel capacity | By 2030 |
| Net Zero Emissions | By 2070 |
| 60 GW RE capacity by NTPC | By 2032 |
| 32 GW RE capacity by NLCIL | By 2047 |
Why This Matters?
- NLCIL and NTPC’s green energy push represents a significant policy shift toward decarbonization.
- The move reflects liberalization of PSU investment norms to enable faster implementation of renewable energy targets.