NLC India has granted an in-principle approval to invest up to ₹16.3 billion (~$190 million) in one or more tranches in its wholly owned subsidiary, NLC India Renewables (NIRL).

This investment will be utilized to support NIRL’s renewable energy projects via capital expenditure funding.

The investment will be made by subscribing to 100% equity shares in NIRL at their face value.

The related-party transaction is subject to approvals from the Department of Investment and Public Asset Management and other relevant authorities.

In addition to the equity investment in its renewables arm, NLC India’s board also approved borrowing a term loan in Japanese Yen equivalent to $100 million from Sumitomo Mitsui Banking Corporation to fund clean energy projects.

NLC India, a public sector enterprise under the Ministry of Coal, operates 1,431.26 MW of renewable energy capacity, comprising a mix of ground-mounted solar, rooftop solar, floating solar, and wind power projects. The company has set a target to install 10.11 GW of solar capacity by 2030.

Recently, NLC India Renewables signed a joint venture agreement with Mahatma Phule Renewable Energy and Infrastructure Technology (MAHAPREIT) to develop 5,000 MW of renewable energy projects in Maharashtra. These projects will span solar, wind, hybrid systems, floating solar, battery energy storage systems, and pumped storage, with an initial focus on developing 500 MW in the first phase. The joint venture company will be structured with NLC India Renewables holding 74% equity and MAHAPREIT holding the remaining 26%.

In May this year, NLC India invited bids for the engineering, procurement, and construction of grid-connected solar projects with a cumulative capacity of 5 MW. The total capacity is divided into a 4 MW rooftop and a 1 MW floating solar component.

In March, NLC India invited bids to commission a 4 MW proton exchange membrane electrolyzer-based green hydrogen project at Neyveli, Tamil Nadu.