NLC India Targets 10 GW RE Capacity by 2030, Eyes IPO for Green Energy Arm

NLC India Ltd. (NLCIL), a Navratna Government of India Enterprise, under the administrative control of Ministry of Coal, has an ambitious plan to scale up its green power capacity to 10 GW by 2030, a sharp rise from its current 1.4 GW. The company outlined its expansion strategy during a recent investor call, emphasising its commitment to clean energy and sustainability.

Discussing this plan, M. Prasanna Kumar, Chairman and Managing Director, said, "Our capacity is 1.4 GW, and we are targeting 10 GW, while the entire country is aiming to double or triple its capacity. We are looking at a sevenfold increase in our renewable capacity. We are open to all avenues for adding this capacity. Currently, 2.5 GW of renewable capacity is already under development, and we are exploring multiple possibilities, including our joint ventures with Rajasthan and Assam. We are also in discussions with the Odisha government and other states. We are evaluating all opportunities to reach our 10 GW target by 2030."

As part of its aggressive growth plan, NLCIL has entered into key partnerships to develop large-scale solar projects across India. The company has signed joint venture agreements with Rajasthan Rajya Vidyut Utpadan Nigam Ltd. (RVUNL) to develop 2 GW of renewable energy capacity in Rajasthan. Additionally, it has partnered with Assam Power Distribution Company Ltd. (APDCL) for nearly 1 GW of solar projects in Assam. These collaborations are expected to significantly strengthen NLCIL’s footprint in India’s renewable energy sector.

In Gujarat, NLCIL is making steady progress at the Khavda Solar Park, where it aims to commission 600 MW of solar capacity by the third quarter of the next financial year. In Rajasthan, work is underway on an 810 MW solar project in the Pugal district, with infrastructure development being managed by RVUNL. However, the company has faced delays in commissioning a 300 MW solar project near Barsingsar due to a shortage of domestic solar modules. NLCIL plans to add 80 MW of this capacity within the current fiscal year, with the remaining 220 MW expected to be completed in the first quarter of the next financial year.

A notable aspect of NLCIL’s solar strategy is its cost-plus tariff model for projects in Assam. This approach ensures financial viability in regions with lower solar intensity, making large-scale renewable projects more sustainable.

Beyond solar power, NLCIL is diversifying into new green energy technologies, including green hydrogen and battery storage solutions. The company is setting up a green hydrogen pilot project in Neyveli, utilising a 4 MW solar plant to power the initiative. This move aligns with India’s broader push for clean energy alternatives and decarbonisation.

In a major financial move, NLCIL is also preparing for the initial public offering (IPO) of its renewable energy subsidiary, NLC Green Energy Ltd. (NIRL). The IPO is expected to launch between the last quarter of the 2025-26 financial year and the first quarter of the 2026-27, pending key tax exemptions for the bulk transfer of assets from NLCIL to NIRL.

Prasanna Kumar stated, "The major hurdle for this initiative was obtaining an exemption from the Government of India for the bulk transfer of assets from NLCIL to NIRL. We secured this exemption within five months, whereas similar approvals previously took 1.5 to 2 years. We are expediting all related activities and are optimistic about launching the IPO by the first quarter of FY 2026-27 or the last quarter of FY 2025-26."

Alongside its renewable energy expansion, NLCIL is addressing operational challenges in its thermal power and mining segments. 

To further diversify its business, NLCIL has also ventured into the production of manufactured sand (M-sand) through its OB to Sand projects and is participating in critical mineral auctions. These efforts are aimed at ensuring long-term sustainability and reinforcing its role in India’s transition to a cleaner energy future.