The Union Cabinet on Wednesday approved enhanced delegation of financial powers to state-run NTPC Ltd., allowing it to invest up to ₹20,000 crore ($2.4 billion) in its renewable energy subsidiaries, more than doubling the previous cap, to help accelerate the country’s shift to clean energy.
The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has cleared the move, which enables NTPC to invest in NTPC Green Energy Ltd. and its units beyond the earlier limit of ₹7,500 crore, the government stated in a press release.
The decision is aimed at supporting NTPC’s goal of adding 60 gigawatts of renewable energy capacity by 2032, as part of India’s broader target to reach 500 GW of non-fossil energy capacity by 2030.
Boost to Renewable Infrastructure
The government stated that the increased investment authority will enable the faster development of clean energy projects and strengthen electricity infrastructure, thereby helping to provide round-the-clock power across the country.
“Renewable energy projects will also generate direct and indirect employment opportunities during construction and operation phases,” the statement said, adding that the decision is expected to benefit local suppliers, micro, small and medium enterprises, and spur entrepreneurship in the sector.
NTPC’s Expanding Green Portfolio
NGEL, NTPC’s listed renewable energy arm, has a current portfolio of about 32 GW. This includes 6 GW in operation, 17 GW under construction or awarded, and a 9 GW pipeline, according to the government.
Much of the organic growth is being channeled through NTPC Renewable Energy Ltd., a wholly owned subsidiary of NGEL.
NGEL has also partnered with several state governments and public-sector enterprises to expand its renewable footprint, the statement said.
India Surpasses Interim Climate Milestone
India has already met 50 percent of its installed power capacity from non-fossil fuel sources, five years ahead of its target under the Paris climate accord. The country, the world’s third-largest emitter, is aiming for net-zero emissions by 2070.
NTPC, India’s largest power utility, is playing a central role in the government’s clean energy transition plans and is increasingly shifting investment from coal-fired power to solar and wind energy.
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