Cabinet approves NTPC’s plan to invest up to ₹20,000 crore in renewable energy arm

The Union Cabinet on Wednesday approved state-run power utility NTPC Ltd’s plan to invest up to ₹20,000 crore in its renewable energy subsidiary to accelerate green capacity additions.

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, granted enhanced delegation of power to NTPC, allowing the Maharatna company to increase its investment in NTPC Green Energy Ltd (NGEL) beyond the earlier limit of ₹7,500 crore.

The approval will enable NGEL, which currently operates 6 GW of renewable capacity with 26 GW under development, to expand its portfolio to 60 GW by 2032.

NGEL’s growth is expected to occur both organically through its wholly owned subsidiary NTPC Renewable Energy Ltd (NREL) and via joint ventures with state governments and other central public sector undertakings.

“This is an approval to the board to raise funds,” Information and Broadcasting Minister Ashwini Vaishnaw told reporters, explaining that public sector units require cabinet approval for investments above prescribed limits.

"Every PSU has a certain limit over which, if they want to invest, they have to come to the Cabinet. Below that, there are delegations of power – some investments can be done at the board level, some have to be approved by the Department of Public Enterprises, and above that, they have to come to the cabinet,” Vaishnaw said.

India has set a target of reaching 500 GW of non-fossil fuel capacity by 2030. The country has already achieved 50% of its installed electricity capacity from non-fossil sources five years ahead of its Nationally Determined Contributions target under the Paris Agreement.

NTPC, India’s largest power producer, is aiming for net zero emissions by 2070 in line with national goals. The expanded investment in NGEL is expected to strengthen the country’s renewable energy infrastructure while generating employment opportunities during both the construction and operations phases, according to an official readout.