Page 60 - Policy Economic Report - July 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Central Public Sector Enterprises (CPSEs). This strategic decision enables NLCIL to invest Rs.7,000 Crore in
its wholly owned subsidiary, NLC India Renewables Limited (NIRL) and in turn NIRL investing in various
projects directly or through formation of Joint Ventures, without the requirement of prior approval under
the existing delegation of powers. This investment is further exempted from the 30% net worth ceiling
stipulated by the Department of Public Enterprises (DPE) for overall investment by CPSEs in JVs and
Subsidiaries providing NLCIL and NIRL greater operational and financial flexibility.

The exemptions aim to support NLCIL’s ambitious target of developing 10.11 GW of Renewable Energy
(RE) capacity by 2030 and expanding this to 32 GW by 2047. The approval aligns with India’s commitments
made during COP26 for transition toward a low-carbon economy and achieve sustainable development.
The country has pledged to build 500 GW of non-fossil fuel energy capacity by 2030 as part of the
“Panchamrit” goals and its long-term commitment to achieve Net Zero emissions by 2070.

As a significant power utility and Navratna CPSE, NLCIL is playing a pivotal role in this transition. Through
this investment, NLCIL seeks to substantially expand its renewable energy portfolio and contribute
meaningfully to national and global climate action objectives.

At present, NLCIL operates seven renewable energy assets with a total installed capacity of 2 GW, which
are either operational or close to commercial operation. These assets will be transferred to NIRL pursuant
to this Cabinet approval. NIRL, envisioned as the flagship platform for NLCIL’s green energy initiatives, is
actively exploring fresh opportunities across the renewable energy sector, including participation in
competitive bidding for new projects.

The approval is expected to reinforce India’s position as a green energy leader by reducing dependence
on fossil fuels, lowering coal import, and enhancing reliability of 24x7 power supply across the country.

Beyond the environmental impact, this initiative is projected to generate significant employment—both
direct and indirect—during the construction and operation phases, thereby benefiting local communities
and supporting inclusive economic growth.

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