With the goal of producing 60 GW of renewable energy capacity by 2032, the state-owned National Thermal Power Corporation Limited was given permission to invest INR 20,000 crore by the Cabinet Committee on Economic Affairs, which was chaired by Prime Minister Narendra Modi.
Furthermore, the Cabinet granted a unique exemption from the current investment guidelines that apply to Navratna Central Public Sector Enterprises, allowing Neyveli Lignite Corp India Limited (NLCIL) to invest INR 7,000 crore.
The subsidiary NTPC Green Energy Limited (NGEL) will receive the planned investment. After that, NGEL will invest in NTPC Renewable Energy Limited (NREL) and its other subsidiaries, going above the INR 7,500 crore previously authorised limit, which has now been raised to INR 20,000 crore.
NTPC to Boost Renewable Projects in India
The government claims that the extra money given to NTPC will support the growth of renewable energy projects in India and be essential to fortifying the nation’s electrical infrastructure, which will guarantee consistent, dependable access to electricity.
It is anticipated that investments in renewable energy projects will create both direct and indirect job possibilities for the local population. According to the government, in addition to fostering employment and socioeconomic development, it will support entrepreneurship prospects in the nation.
According to Home Minister Amit Shah, raising NTPC and NGEL’s investment restrictions in the sector to INR 20,000 crore will hasten the nation’s progress towards reaching its 2032 target of 60 GW of green energy production.
However, NLC India Ltd will be allowed to spend INR 7,000 crore in green energy thanks to a unique exemption, demonstrating India’s unwavering commitment to building a healthier earth and a greener Bharat, Shah added.
India Aligning Itself with Paris Agreement
Five years ahead of its Nationally Determined Contributions target under the Paris Agreement, India has accomplished a significant milestone by guaranteeing that 50% of its installed energy capacity comes from non-fossil fuel sources.
The current goal is to reach net zero emissions by 2070 and raise non-fossil fuel generation capacity to 500 GW by 2030. Regarding the NLCIL decision, the government stated that it would allow the government-owned company to invest INR 7,000 crore in NIRL and allow NIRL to invest in a number of projects directly or through joint ventures without needing prior approval under the current power delegation.
By reducing reliance on fossil fuels, lowering coal imports, and improving the dependability of the nation’s 24-hour power supply, the decision is anticipated to strengthen India’s status as a pioneer in green energy.
NLCIL currently oversees seven renewable energy assets that are either in the process of going commercial or have a combined installed capacity of 2 GW. After this Cabinet clearance, these assets will be given to NIRL.
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