The Cabinet Committee on Economic Affairs has approved a key exemption for NLC India Ltd (NLCIL), enabling the Navratna PSU to invest Rs 7,000 crore in its wholly owned subsidiary, NLC India Renewables Ltd (NIRL), without the need for prior government approval. The decision, chaired by Prime Minister Narendra Modi, removes the mandatory investment cap and prior clearance typically applicable to central public sector enterprises (CPSEs).According to a government release, this exemption from the existing guidelines also bypasses the 30% net worth ceiling imposed by the Department of Public Enterprises (DPE) for investments by CPSEs in subsidiaries or joint ventures. The move grants NLCIL and NIRL greater operational and financial freedom as they scale up green energy efforts.“The exemptions aim to support NLCIL’s ambitious target of developing 10.11 GW of Renewable Energy (RE) capacity by 2030 and expanding this to 32 GW by 2047. The approval aligns with India’s commitments made during COP26 for transition toward a low-carbon economy and achieve sustainable development. The country has pledged to build 500 GW of non-fossil fuel energy capacity by 2030 as part of the “Panchamrit” goals and its long-term commitment to achieve Net Zero emissions by 2070,” the release stated.Currently, NLCIL operates seven RE assets with a combined capacity of 2 GW, either commissioned or nearing commercial operation. These assets will be transferred to NIRL, which has been set up as the flagship platform for the company’s renewable energy push. NIRL will also participate in competitive bidding for upcoming RE projects.“The approval is expected to reinforce India’s position as a green energy leader by reducing dependence on fossil fuels, lowering coal import, and enhancing reliability of 24×7 power supply across the country.” the release stated.In addition to environmental gains, the move is expected to create significant employment opportunities during the construction and operation phases, it stated.