NTPC, NLC India Get Green Light to Invest ₹27,000 Crore in Renewables

India’s renewable energy landscape is poised for a transformative leap forward. In a significant development, the Union Cabinet has granted approval allowing state-run power giants NTPC Ltd and NLC India Ltd to invest a combined total of ₹27,000 crore in their respective green energy subsidiaries. The move marks a bold step towards accelerating India’s clean energy transition and meeting its ambitious net-zero goals.

NTPC is now permitted to infuse up to ₹20,000 crore into NTPC Green Energy Limited (NGEL), while NLC India has been authorized to invest ₹7,000 crore into NLC India Renewables Ltd (NIRL). Both subsidiaries are dedicated to the expansion of renewable energy portfolios across solar, wind, and hybrid technologies.

Strengthening Green Subsidiaries

The Cabinet approval provides these public sector undertakings (PSUs) with the financial firepower needed to scale their green energy ambitions. For NTPC, the infusion will allow NGEL to invest in new and ongoing projects, acquire strategic assets, and partner with domestic and global players to enhance its renewables footprint.

Similarly, NLC India will utilize its ₹7,000 crore approval to empower NIRL in implementing solar and wind power projects across the country. This decision supports the government’s push to transition traditional coal-based energy companies toward a greener, more sustainable model without compromising on power capacity or economic growth.

NTPC’s Green Push: Leading from the Front

NTPC, India’s largest power generator, has already established itself as a frontrunner in clean energy adoption among PSUs. With over 3,400 MW of installed renewable capacity and a pipeline exceeding 20,000 MW, NTPC has made steady progress in moving beyond fossil fuels. The ₹20,000 crore approval gives the company a substantial runway to fast-track solar and wind projects in states like Rajasthan, Gujarat, and Andhra Pradesh.

The investment will also help NTPC fulfill its commitment to reach 60 GW of renewable energy capacity by 2032. The company’s green subsidiary, NGEL, is envisioned as the spearhead of this transition, and with this infusion, it is better positioned to secure land, technology, and partnerships needed for project execution at scale.

NLC India: Rising Green Aspirant

Traditionally known for its lignite mining and thermal power operations, NLC India has been pivoting toward clean energy in recent years. With this Cabinet approval, NLC India Renewables Ltd can now take a more aggressive approach toward renewable energy expansion, targeting both standalone solar and hybrid projects.

Currently, NLC’s renewable capacity stands at about 1.4 GW. The infusion of ₹7,000 crore will enable it to aim for an ambitious target of 6 GW of renewable energy capacity over the next few years. NLC has already identified project sites in Tamil Nadu, Kerala, and Madhya Pradesh and plans to bid for several government and commercial tenders in the near future.

Strategic Implications for India’s Climate Goals

This Cabinet decision couldn’t have come at a more pivotal time. With India aiming to achieve 500 GW of non-fossil fuel capacity by 2030 and commit to net-zero emissions by 2070, public sector involvement in clean energy is critical. The government has already rolled out various policy mechanisms, including viability gap funding (VGF), production-linked incentives (PLI), and faster clearances for renewable projects.

PSUs like NTPC and NLC, with their existing infrastructure, technical expertise, and institutional backing, are ideally placed to bridge the gap between policy and execution. Their entry into large-scale green investments also sends a signal to private players and global investors about the seriousness of India’s energy transition.

A Balancing Act: Coal vs. Renewables

While these investments mark a clear shift toward sustainability, they also raise important questions about how these traditionally coal-dependent companies will manage their dual roles. Both NTPC and NLC continue to operate large coal-fired plants, which remain central to India’s base load power requirements.

Experts argue that this dual strategy—maintaining thermal operations while investing aggressively in green energy—represents a transitional phase. It offers a stable energy environment while gradually reducing dependence on fossil fuels. However, it will require disciplined financial planning, technology upgrades, and innovative energy storage solutions to make this balancing act viable in the long run.

Unlocking Green Financing and Private Participation

One of the biggest challenges for renewable energy expansion in India has been access to affordable financing. With these Cabinet approvals, NTPC and NLC’s subsidiaries are expected to attract more private and institutional investment. NGEL, for instance, is already exploring joint ventures and green bonds to fund upcoming projects.

The green investment framework will also support the development of decentralized solar parks, rooftop solar schemes, and renewable-powered electric mobility infrastructure. As these PSUs invest in grid modernization, battery storage, and hydrogen-based solutions, they may well become testing grounds for India’s next generation of clean technologies.

Employment and Economic Upliftment

These investments are also likely to create thousands of jobs—both direct and indirect—in engineering, construction, and maintenance sectors. Green energy projects, especially in remote and rural areas, bring additional socio-economic benefits like infrastructure development, skilling of the local workforce, and increased revenue for state governments.

For example, NTPC’s upcoming solar park in Gujarat is expected to employ over 2,000 people during its construction phase and generate clean power for nearly 2 lakh households. Similar outcomes are anticipated from NLC’s solar and wind initiatives in southern India.

Challenges on the Horizon

Despite the optimism, there are challenges to consider. Land acquisition, transmission infrastructure, and environmental clearances remain significant roadblocks for large-scale renewable projects. Additionally, the intermittency of solar and wind power continues to raise concerns about energy reliability, especially during peak demand.

However, with robust government support and the operational strength of PSUs, these hurdles are expected to be addressed progressively through policy innovation, better coordination with state agencies, and enhanced stakeholder engagement.

 A Green Light for a Greener India

The Cabinet’s approval of ₹27,000 crore investments for NTPC and NLC India is more than just a financial green light—it’s a strategic move to put India on a fast track toward a cleaner, more resilient energy future. It marks the growing recognition that sustainability and development are not mutually exclusive, but mutually reinforcing.

As NTPC Green Energy Ltd and NLC India Renewables Ltd deploy these funds across India’s diverse energy landscape, they are not only powering homes and industries—they are powering a new era of climate-conscious, inclusive growth. The next few years will reveal just how transformative this green momentum can be.