NLC India Bets Big on Renewables with ₹3,720 Crore Investment

22 Nov 2024 , 09:49 AM

NLC India’s board approved a strategic investment of ₹3,720 crore in its subsidiary, NLC India Renewables Ltd (NIRL), to support renewable energy projects in Gujarat and Rajasthan.

The investment will be made in phases, pending necessary regulatory clearances. The company plans to acquire renewable energy assets worth ₹6,263 crore (as of September 30, 2024) through equity share subscriptions under the Asset Monetisation Plan. Shares for the acquisition will be subscribed at face value.

Letters of Comfort were approved for four subsidiaries — NIRL, NLC India Green Energy Ltd, Neyveli Uttar Pradesh Power Ltd, and NLC Tamil Nadu Power Ltd — to facilitate their borrowing needs. These financial support measures will be managed within NLC India’s borrowing limits and credit rating framework.

NLC India projects a 7-8% growth in power demand annually until 2031-32, driven by opportunities in thermal power and the National Electricity Plan (NEP).

Chairman and MD Prasanna Kumar Motupalli announced plans to expand total capacity from 6 GW to 20 GW by 2030, evenly split between conventional and renewable energy.

The renewable energy capacity, currently at 1.4 GW, will grow to 10 GW, making up over 50% of the company’s total capacity by 2030. The company also aims to double its mining capacity to 100 million metric tonnes by 2030, including a strategic acquisition. NLC India’s regulated equity is expected to increase significantly, from ₹7,800 crore to ₹23,000 crore, by the end of the decade.