NLC India to Raise Funds for Clean Energy Expansion via IPO of Subsidiary

NLC India Ltd (NLCIL), a lignite-to-power producer, plans to raise funds through an initial public offering (IPO) of its wholly owned subsidiary, NLC India Renewables Ltd, by the first quarter of the next financial year, according to Chairman and Managing Director Prasanna Kumar Motupalli.

In an interview with PTI, Motupalli shared that NLCIL aims to increase its renewable energy capacity from 1.4 GW to 6 GW by 2030. The funds from the IPO will support this expansion. Additionally, the company plans to secure soft loans from foreign entities.

Currently, NLCIL is in the process of transferring its existing assets to NLC India Renewables Ltd, which requires government approval. This approval is expected by October, with the IPO planned for early next financial year.

NLCIL has also established NLC India Green Energy Ltd for new green energy projects. The CMD emphasized the need for a balance between conventional thermal and renewable power generation to meet the country's energy needs.

NLCIL, a carbon-neutral company, currently has a capacity of 6 GW, consisting of 1.4 GW renewable and 4.6 GW thermal. The company plans to scale up its total power capacity to 17 GW by 2030, with 11 GW from conventional sources and 6 GW from renewables.

This expansion will require a capital infusion of approximately ₹1 lakh crore, supported by increased coal and lignite production and diversification into other businesses. NLC India Renewables Ltd will focus on asset monetization of existing renewable projects, while NLC India Green Energy Ltd will handle future renewable projects.

NLCIL, a Navratna company under the Ministry of Coal, reported an 86.2% drop in consolidated net profit to ₹114.23 crore for the March quarter due to lower income. Its core operations are mining and power generation.

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