The Cabinet Committee on Economic Affairs (CCEA), led by Prime Minister Narendra Modi, has approved a substantial investment of up to ₹20,000 crore by NTPC Ltd in its renewable energy (RE) sector. This decision, made on Wednesday, marks a significant step towards India's ambitious green energy goals. The approved investment aims to boost renewable energy capacity and facilitate the accelerated development of renewable projects in the country.

The approval grants enhanced delegation of power to NTPC, allowing the company to invest in NTPC Green Energy Limited (NGEL), its subsidiary, and subsequently, NGEL's investments in NTPC Renewable Energy Limited (NREL) and other joint ventures and subsidiaries. This enhanced delegation surpasses the previously approved limit of ₹7,500 crore. The goal is to achieve a 60 GW renewable energy capacity by 2032.

According to an official statement, this move is expected to play a vital role in strengthening power infrastructure and ensuring reliable, round-the-clock electricity access across the nation. Renewable energy projects are also expected to generate both direct and indirect employment opportunities for local people during the construction, operations, and maintenance phases. This will provide a boost to local suppliers, local enterprises, MSMEs, and encourage entrepreneurship opportunities, promoting employment and socio-economic development in the country.

I&B Minister Ashwini Vaishnaw explained that the Cabinet approval was necessary because the investment exceeded prescribed limits for public sector units, and that above certain investment limits, PSUs require Cabinet approval.

India has set a target of achieving 500 GW of non-fossil fuel capacity by 2030 and Net Zero emissions by 2070. The country has already achieved a significant milestone, with 50% of its installed electricity capacity coming from non-fossil fuel sources, achieving this target five years ahead of the Nationally Determined Contributions to the Paris Agreement.

NGEL currently operates 6 GW of renewable capacity and has 26 GW under development. The company plans to expand its portfolio to 60 GW by 2032 through organic growth via NREL and through joint ventures with state governments and other central public sector undertakings. NGEL has a portfolio of approximately 32 GW of renewable capacity, including 6 GW operational, 17 GW contracted or awarded, and a 9 GW pipeline. This move is expected to significantly bolster India's green energy transition.