In a major push for clean energy, the government has allowed two central public sector enterprises to invest up to ₹270 billion (~$3.14 billion) in their renewable energy subsidiaries.

The decision by the Cabinet Committee on Economic Affairs (CCEA) is expected to facilitate the acceleration of India’s renewable energy project development and ensure investments in reliable, round-the-clock electricity across the country.

The CCEA authorized NTPC to invest up to ₹200 billion (~$2.32 billion) in its renewable energy subsidiaries, NTPC Green Energy (NGEL) and NTPC Renewable Energy (NREL), as well as other joint ventures. The earlier investment cap was ₹75 billion (~$873.38 million).

NGEL has a renewable energy portfolio of approximately 32 GW. Of this capacity, approximately 6 GW is operational, roughly 17 GW is contracted or under award, and 9 GW is in the pipeline.

The increase in the investment limit will help NTPC’s subsidiaries achieve their goal of 60 GW of renewable energy capacity by 2032.

The government also approved a special exemption for NLC India (NLCIL) from the prevailing investment guidelines for public sector enterprises to invest ₹70 billion (~$815.16 million) in its wholly owned subsidiary, NLC India Renewables (NIRL). NIRL will invest this amount in multiple projects, either directly or by forming joint ventures, without requiring prior approval under the existing delegation of powers.

This investment is also exempted from the 30% net worth ceiling prescribed by the Department of Public Enterprises for total investments by central public sector enterprises in joint ventures and subsidiaries.

NLC India aims to develop 10.11 GW of renewable energy capacity by 2030, with a projected expansion to 32 GW by 2047. It currently operates seven renewable energy assets with a total installed capacity of 2 GW. These assets are either operational or close to commercial operation. They will be transferred to NIRL after the Cabinet’s approval.

Recently, NLCIL granted an in-principle approval to invest up to ₹16.3 billion (~$190 million) in one or more tranches in NIRL.

In June this year, NTPC raised an unsecured $750 million via an external commercial borrowing syndicated term loan facility.