New Delhi: The Union Cabinet has approved a significant increase in NTPC Limited’s investment cap for renewable energy ventures, allowing the state-run power major to invest up to Rs 20,000 crore in its green energy subsidiaries. This move, which raises the earlier limit of Rs 7,500 crore by nearly three times, is aimed at speeding up project execution and capacity addition across NTPC’s green energy portfolio. The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, cleared the proposal on Wednesday. The approval grants NTPC greater financial autonomy to support its renewable subsidiaries, including NTPC Green Energy Ltd (NGEL) and NTPC Renewable Energy Ltd (NREL), along with other associated joint ventures.
According to a government statement, the increased investment threshold is expected to facilitate quicker implementation of green energy projects under NGEL, which currently manages a renewable energy pipeline of 32 GW. This includes 6 GW of operational projects, 17 GW of awarded or contracted projects, and 9 GW under development. The decision aligns with NTPC’s target of installing 60 GW of renewable energy capacity by 2032. This goal is part of India’s broader clean energy roadmap, which aims to achieve 500 GW of non-fossil fuel capacity by 2030 and reach net-zero carbon emissions by 2070.
India has already achieved a key milestone in this transition by reaching 50% of its installed electricity capacity from non-fossil fuel sources, ahead of its 2030 target under the Paris Agreement. The Cabinet highlighted that expanding NTPC’s renewable portfolio will contribute to strengthening the country’s power infrastructure. It is also expected to create direct and indirect employment opportunities during both construction and operational phases. Additionally, the rollout of new projects may provide business opportunities for local suppliers and small and medium enterprises (MSMEs), which are often engaged in procurement, installation, and maintenance activities.
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