NLC India, Gujarat Ink ₹25,000 Cr Green Energy Pact
Overview
NLC India Limited has finalized a memorandum of understanding with the Gujarat government to develop renewable energy projects, including solar, wind, and battery storage. The agreement outlines an investment potential of approximately ₹25,000 crore, aiming to boost employment and advance India's decarbonization targets through NLCIL's subsidiary, NIRL.
Stocks Mentioned
Landmark Green Energy Partnership
NLC India Limited (NLCIL), a central public sector enterprise, has inked a significant memorandum of understanding with the Gujarat government. The non-binding pact, signed on January 12, 2026, during the Vibrant Gujarat Regional Conference, sets the stage for developing large-scale renewable energy projects across the state.
Massive Investment Potential
The agreement envisions an aggregate investment of up to ₹25,000 crore for solar, wind, hybrid, and battery energy storage projects. This collaboration is expected to generate substantial employment opportunities, aligning with NLCIL's strategic objective to achieve 10 gigawatts of renewable energy capacity by 2030.
Facilitating Growth and Decarbonisation
The Gujarat government pledged to assist NLCIL's wholly-owned renewable energy subsidiary, NIRL (NLC India Renewables Limited), in securing necessary statutory approvals and clearances. This support is crucial for the timely implementation of projects, furthering NLCIL's goals of sustainable development and energy security.
Subsidiary's IPO Progress
This development follows NLCIL's board approval on January 12, granting in-principle consent for the listing of NIRL. The subsidiary plans to dilute up to 25% equity via a public offer in tranches, subject to regulatory approvals. NIRL is projected to raise approximately ₹4,000 crore through an IPO by fiscal year 2027.
Financial Snapshot
NLC India Limited reported a 27.1% year-on-year decline in consolidated net profit for the quarter ended September 2025, falling to ₹665 crore from ₹912 crore a year prior. However, revenue from operations saw a 14% increase, reaching ₹4,178.4 crore, driven by higher output and improved realizations. Earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 30.5% to ₹1,400 crore. The company's shares closed at ₹255.45 on Tuesday, marking a marginal 0.18% decrease.
