In a major policy decision to fast-track India’s green energy ambitions, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved enhanced financial autonomy to NTPC Ltd.
The move will allow it to invest up to ₹20,000 crore in its renewable energy subsidiary, NTPC Green Energy Limited (NGEL). This marks a significant increase from the previous investment cap of ₹7,500 crore.
The decision will enable NGEL to further invest in NTPC Renewable Energy Limited (NREL) and other joint ventures or subsidiaries to accelerate the development of renewable energy (RE) projects across India.
The move is aimed at facilitating NTPC’s ambitious plan to add 60 GW of renewable energy capacity by 2032, contributing substantially to the country’s broader clean energy goals.
According to the government, the enhanced delegation will not only fast-track the country’s transition to green energy but also play a critical role in strengthening power infrastructure and ensuring round-the-clock access to reliable electricity.
Renewable energy projects under this expansion are expected to create substantial direct and indirect employment opportunities, particularly at the construction and operation stages.
The initiative will also benefit local suppliers, micro, small and medium enterprises (MSMEs), and promote entrepreneurship in rural and semi-urban areas, thereby contributing to socio-economic development.
India has already achieved a significant milestone in its energy transition journey by meeting 50% of its installed electricity capacity from non-fossil fuel sources — five years ahead of the target set under its Nationally Determined Contributions (NDCs) to the Paris Agreement.
The nation now aims to reach 500 GW of non-fossil energy capacity by 2030 and achieve net-zero emissions by 2070.
NGEL, the renewable energy-focused subsidiary of NTPC, is spearheading the group’s green energy ambitions through a mix of organic and inorganic growth strategies.
Organic capacity addition is being led by its wholly-owned subsidiary NREL, while NGEL has also forged partnerships with several state governments and central public sector enterprises (CPSEs) for RE project development.
Currently, NGEL holds a renewable energy portfolio of approximately 32 GW, which includes around 6 GW of operational capacity, 17 GW of awarded or contracted capacity, and 9 GW in the project pipeline.