In a significant move to advance India’s clean energy agenda, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved an increase in the investment limit for NTPC Ltd. The revised ceiling allows the public sector power major to invest up to ₹20,000 crore in renewable energy projects, a substantial rise from the earlier cap of ₹7,500 crore. This decision aims to bolster NTPC’s efforts in expanding its green energy portfolio and aligns with the government’s larger vision for sustainable energy development.

The increased limit will primarily benefit NTPC Green Energy Ltd (NGEL), a listed subsidiary responsible for implementing the group’s renewable projects. NGEL, through its wholly owned subsidiary NTPC Renewable Energy Ltd. (NREL) and various joint ventures, will spearhead the upcoming capacity expansions. The approval will support NTPC’s short-term target of achieving 19 GW of renewable capacity by FY2027, which would require a total investment of around ₹1 lakh crore. Presently, the company has an operational renewable capacity of 6 GW.

Looking ahead, NTPC has set a long-term target of installing 60 GW of renewable energy capacity by FY2032. To achieve this, the group anticipates an investment of nearly ₹5 lakh crore. This ambitious goal is aligned with India’s national objective of reaching 500 GW of non-fossil energy capacity by 2030, a milestone that will play a crucial role in the country’s transition toward a low-carbon economy.

The government clarified that the enhanced investment authorisation is limited strictly to renewable energy initiatives and does not include NTPC’s nuclear energy operations under NTPC Parmanu Urja Nigam Ltd (NPUNL). A government statement emphasised that the new delegation of financial powers would accelerate the development of renewable projects, reinforce national power infrastructure, and ensure continuous access to clean electricity across India.

In addition to NTPC’s funding boost, the Cabinet also approved a ₹7,000 crore investment by NLC India Ltd for renewable energy expansion. Both public sector undertakings are expected to leverage this financial capacity to scale up their projects rapidly, foster employment generation, and stimulate local economic growth.

Market reactions to the announcement were modest. On July 16, NTPC Green shares closed nearly 2% higher at ₹112.20, while NTPC Ltd shares saw a marginal rise of 0.03% to ₹342.70.

NGEL currently manages a green energy portfolio of approximately 32 GW, which includes 6 GW of commissioned projects and a robust pipeline of 9 GW. The remainder comprises early-stage developments and partnerships with state governments and other public entities. These collaborations will be crucial in maintaining the momentum needed to meet India’s climate and energy security targets. With the country already achieving over 50% of its installed electricity capacity from non-fossil fuel sources, this Cabinet decision further underscores India’s commitment to achieving net-zero emissions by 2070.

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