The Cabinet Committee on Economic Affairs (CCEA) on Wednesday granted enhanced functional autonomy to state-run NTPC by allowing it to invest up to Rs 20,000 crore in green energy sans any separate government approval. An earlier investment cap was Rs 7,500 crore.
The move is expected to put the renewable energy (RE) expansion plans of NTPC Green (NGEL), a listed entity, on the fast track. The investments can also be through step-down subsidiary NTPC RE, and various joint ventures, including with state governments.
NTPC through its arms are aiming at RE capacity of a massive 60 giga watt (GW) by 2032, a plan that stand the country in good stead in reducing carbon intensity of its gross domestic product and meet its climate commitment of net-zero emission by 2070.
The CCEA also approved a special exemption for NLC India from the prevailing investment guidelines applicable to navratna CPSEs, enabling it to invest Rs 7,000 Crore in its wholly owned subsidiary, NLC India Renewables , and in turn NIRL investing in various projects directly or through formation of joint ventures, without the requirement of prior approval.
“The enhanced delegation given to NTPC and NGEL will facilitate accelerated development of renewable projects in the country. This move will also play a vital role in strengthening power infrastructure and ensuring investment in providing reliable, round-the-clock electricity access across the nation,” the government said in a statement.
India has achieved a landmark in its energy transition journey by reaching 50% of its installed electricity capacity from non-fossil fuel sources – five years ahead of the target set under its Nationally Determined Contributions to the Paris Agreement.
NGEL has a portfolio of ~32 GW RE capacity including ~ 6 GW Operational capacity, ~17 GW Contracted/ Awarded capacity and Pipeline of ~9 GW.