NLC India To Invest Rs 1.25 Lakh Crore Capex By 2030, Bets Big On Renewable Energy

NLC India Ltd., a public sector enterprise, is planning to invest Rs 1.25 lakh crore by 2030 to expand its capacity from the existing 6.7 gigawatt to 20 gigawatt, Prasanna Kumar Motupalli, Chairman and Managing Director (CMD) of the company has said.

He said, out of Rs 1.25 lakh crore planned capex, the company will be spending around Rs 65,000 crores on renewables and other green initiatives, while around Rs 45,000 crore will be earmarked for thermal and around 15,000 crore for mining.

The official elaborated that out of the Rs 65,000 crore capex on renewables, around Rs 15,000 crore will be on the battery storage system.

"We are having an aggressive capacity addition plan, adding the renewable capacity as well as the conventional capacity to take the capacity from the existing 6.7 gigawatt to 20 gigawatt. For that, the Capex requirement is around 1.25 lakh crore by 2030," Kumar told PTI Videos.

NLCIL is arranging finance for the planned capex of Rs 1.25 lakh crore through internal accruals, domestic loans, Initial Public Offering’s (IPOs), External Commercial Borrowings (ECBs), he explained.

NLC is contemplating starting a consulting business abroad, initially in Sri Lanka, Bhutan, Nepal, Myanmar, Africa, and the Middle East and acquire battery mineral assets overseas — especially in Vanadium, Cobalt, Lithium and Copper, among others, he said.

Recently, NLC got two critical mineral blocks in Chhattisgarh and with that experience the company is exploring the possibilities of critical mineral mining abroad also.

"Some due diligence is being done for some lithium mines in Mali. And some copper and cobalt mines in the African state of Congo. So, we are open for exploration of critical minerals across the globe. We are finding opportunities and doing due diligence to take it forward," he said.

NLC India Renewables Limited (NIRL), a wholly owned subsidiary of NLC, is expected to go for an Initial Public Offering (IPO) during the current financial year aiming to enable value unlocking in the renewable business for its parent company.

The proposed IPO will help raise funds for NIRL, which will likely be utilised for green energy projects.

According to the official, NLC has already received in-principle approval to invest up to Rs 3,720 crore in NIRL, subject to necessary approvals and compliance with guidelines.

NLCIL signed an agreement with the Telangana government to supply 200 MW renewable energy. The construction of the project in Gujarat is expected to be completed in the current financial year.

NCL India earned a consolidated net profit of Rs 2714 crore on a total income from operations of Rs 15283 crore during the last financial year.