The Cabinet grants NLCIL a special exemption to support the drive for renewable energy.

Prime Minister Narendra Modi's Union Cabinet approved a special exemption for NLC India Limited (NLCIL) on 16/7/25, allowing it to invest Rs. 7,000 crore in its plans to expand its renewable energy business without having to follow some of the current investment guidelines for Navratna Central Public Sector Enterprises (CPSEs).

The decision will enable NLCIL to invest the money in NLC India Renewables Limited (NIRL), a fully owned subsidiary. Under the present delegation of powers, the subsidiary can then participate directly or through joint ventures in renewable energy projects without obtaining prior approval. Additionally, the exception removes the cap that restricts CPSEs' total participation in subsidiaries and joint ventures to 30% of their net worth.

The official statement claims that this action will provide NLCIL and its subsidiary more operational and financial freedom to undertake significant renewable energy projects.

NLCIL's target of building 10.11 GW of renewable energy capacity by 2030 and increasing it to 32 GW by 2047 is supported by the approval. It is consistent with India's larger climate commitments at COP26, which include reaching net zero emissions by 2070 and constructing 500 GW of non-fossil fuel generating capacity by 2030.

With a combined installed capacity of 2 GW, NLCIL, a Navratna CPSE involved in lignite mining and power generation, presently runs seven renewable energy assets. The new agreement will include the transfer of these assets to NIRL.

The company's green energy initiatives will be primarily driven by NIRL, which is strongly seeking new opportunities in the field, including taking part in competitive bids for future projects, according to the statement.

The decision is anticipated to enable dependable, 24/7 power supply throughout India, lessen reliance on fossil fuels, and cut coal imports.