Renewables boost: NTPC can now invest Rs 20,000 crore, NLC India Rs 7,000 crore after Cabinet approval

In a decisive push toward clean energy, the Union Cabinet has approved significant investments for two public sector power giants. NTPC Ltd can now invest up to ₹20,000 crore, and NLC India Ltd can invest up to ₹7,000 crore in their renewable energy arms. This combined ₹27,000 crore boost will help India accelerate its shift to clean power.

Cabinet Gives Strategic Green Signal

The Cabinet Committee on Economic Affairs, led by Prime Minister Narendra Modi, approved these changes. Earlier, both companies required prior approvals for large investments in their subsidiaries. Now, they can deploy funds faster and more independently, removing delays caused by red tape.

This policy reform allows these state-run firms to operate with greater flexibility. It also reflects the government’s trust in public sector companies to lead the renewable energy charge.

NTPC: Tripling Its Clean Energy Power

NTPC, India’s largest power producer, can now invest ₹20,000 crore—almost three times the previous limit of ₹7,500 crore. The company aims to install 60 GW of renewable capacity by 2032, and this decision will support that goal.

Much of the investment will flow through NTPC Green Energy Ltd (NGEL). This subsidiary manages clean power projects, including solar, wind, hybrid storage, and green hydrogen. With relaxed investment rules, NTPC can scale up projects faster and compete with private players more effectively.

NLC India: Fast-Tracking Southern Green Growth

NLC India Ltd, a key player in the southern energy sector, also received a major boost. The Cabinet has permitted it to invest ₹7,000 crore through its arm, NLC India Renewables Ltd (NIRL). This move lifts earlier restrictions, such as the 30% net worth cap, making capital flow smoother.

NIRL currently operates around 2 GW of renewable capacity. With this new freedom, it plans to grow to 10.1 GW by 2030, and further to 32 GW by 2047. The company is expected to develop solar and wind projects across states like Tamil Nadu, Rajasthan, and Uttar Pradesh.

Why This Move Matters

This investment approval isn’t just administrative—it’s a big step toward India’s climate goals. The country plans to achieve 500 GW of non-fossil fuel capacity by 2030 and reach net zero emissions by 2070.

These approvals will help NTPC and NLC India lead the green energy transformation. Faster execution of projects means more clean energy, reduced reliance on coal, and lower carbon emissions.

Wider Benefits for the Economy

The Cabinet’s decision is expected to create a ripple effect:

• Boost to Local Manufacturing: Solar panels, turbines, and batteries will be in high demand. This supports India’s goal of becoming self-reliant in green tech.
• More Jobs: Renewable energy creates more jobs per megawatt than fossil fuels. These investments will likely create thousands of skilled and semi-skilled positions.
• Investor Confidence: The move signals a stable and forward-looking policy, encouraging private players to invest in India’s green energy future.

Policy Shift: From Control to Trust

The government has been slowly easing control over public sector investment approvals. Now, it is trusting these firms to act quickly in the national interest. By removing approval barriers, the Cabinet is giving PSUs the tools they need to meet India’s clean energy targets.

This change also makes NTPC and NLC India more competitive. They can now act like agile private-sector firms while still delivering on public goals.

What Lies Ahead

With ₹27,000 crore now unlocked, NTPC and NLC India have a golden opportunity. They can expand green infrastructure across the country—faster, bigger, and better.

The key now is execution. Building capacity is one thing, but completing projects on time and within budget is what will truly define success. As India moves toward a cleaner future, this Cabinet decision may become a defining moment in its energy journey.