In a significant boost to India’s energy transition agenda, the Cabinet Committee on Economic Affairs on Wednesday approved enhanced financial powers for NTPC Ltd, allowing the state-run utility to invest up to ₹20,000 crore in its renewable energy subsidiaries.
The move marks a sharp increase from the earlier investment cap of ₹7,500 crore.
As per the government, the enhanced delegation will enable NTPC to channel fresh equity into its wholly owned subsidiary NTPC Green Energy Ltd (NGEL), which in turn will fund NTPC Renewable Energy Ltd (NREL) and other joint ventures or subsidiaries engaged in green energy.
“This is an equity plan—to be done as projects keep getting completed,” said the Information and Broadcasting Minister.
India has already crossed the 50% mark in installed electricity capacity from non-fossil sources—five years ahead of schedule under its Paris Agreement commitments. The country now targets 500 GW of non-fossil energy capacity by 2030.
Also read: Govt set to seek cabinet nod for ₹32,000–₹35,000 cr fund to reimburse OMCs for LPG losses
NTPC aims to contribute 60 GW of renewable capacity by 2032. NGEL, which is spearheading this ambition, currently has a portfolio of around 32 GW—comprising 6 GW operational, 17 GW awarded, and 9 GW in pipeline.
According to the government, the move will “facilitate accelerated development of renewable projects” and “play a vital role in strengthening power infrastructure and ensuring reliable electricity access across the nation.”
At 3:00 pm, shares of NTPC Ltd were trading marginally higher at ₹342.75 on the NSE, up 0.22%.
