In a move that signals a break from its own cautious tradition, India has bent long-standing rules for one of its oldest state-run power producers.
The Cabinet has granted NLC India Limited (NLCIL) a rare exemption from standard investment guidelines that apply to Navratna public sector companies. The relaxation allows NLCIL to pump ₹7,000 crore ($840 million) into its green energy arm, NLC India Renewables Ltd (NIRL), without seeking prior approval or breaching caps on investment in subsidiaries and joint ventures.
It is a clear vote of confidence in the company’s green ambitions: NLCIL plans to expand its renewable energy portfolio from 2 GW to 10 GW by 2030, and further to 32 GW by 2047. The exemption, the government says, will give the PSU “greater operational and financial flexibility” to chase India’s decarbonisation targets, including the headline promise to install 500 GW of non-fossil capacity by 2030.
Yet the numbers invite a harder look. The cost of building 500 GW of clean capacity is estimated to run well over ₹25 lakh crore ($300 billion). Public sector cash alone will not cut it. While NLCIL’s move is symbolically important—particularly for other fossil-heavy PSUs—it also underscores the gaping hole in India’s green finance pipeline.
What India needs, critics say, is more than relaxed rules for one utility. It needs institutional innovation: a fully operational green bank, deeper capital markets for renewables, and reform in how risks are priced for clean energy investments. Otherwise, the danger is clear. A few bold bets by state-run firms may make headlines. But they will not win the race.
