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NLC India Renewables may launch an initial public offer (IPO) worth Rs 4,000 crore in the first half of the financial year 2026-27, sources told Zee Business. 

The company may file its papers with market regulator SEBI by March, the sources said.

On Wednesday, the Cabinet Committee on Economic Affairs--chaired by Prime Minister Narendra Modi--approved an exemption for NLC India Ltd (NLCIL) from the prevailing investment guidelines applicable to Navratna Central Public Sector Enterprises (CPSEs), enabling it to invest Rs 7,000 crore in its wholly owned subsidiary, NLC India Renewables.

In turn, NLC India Renewables is set to invest directly or indirectly (through joint ventures) in various projects without seeking prior approval under the existing delegation of powers.

This investment is further exempted from the 30 per cent net worth ceiling stipulated by the Department of Public Enterprises (DPE) for overall investment by CPSEs in JVs and subsidiaries providing NLCIL and NIRL greater operational and financial flexibility, according to an official statement. 

Sources said that the Cabinet's decision will lead to an investment of about Rs 35,000-40,000 crore in the company.

The exemptions are aimed at supporting NLC India's ambitious goal of creating 10.11 GW of renewable energy (RE) capacity by 2030, and taking it to 32 GW by 2047.

The Cabinet nod also aligns with the country's commitments at the 26th UN Climate Change Conference (COP26), held in Glasgow, UK, in 2021, for transitioning towards a low-carbon economy and achieving sustainable development.

India has pledged to build 500 GW of non-fossil fuel energy capacity by 2030 as part of the Modi government's five-pronged goal and its long-term commitment to net zero emissions by 2070.

Currently, NLCIL operates seven renewable energy assets with a total installed capacity of 2 GW. These are either operational or close to commercial operation.

These assets will be transferred to NLC India Renewables pursuant to the July 16 Cabinet approval, according to the statement.

Envisioned as the flagship platform for NLC India's green energy initiatives, NLC India Renewables is actively exploring fresh opportunities across the green energy space.

The Cabinet nod is expected to reinforce the country's position as a green energy leader by reducing dependence on fossil fuels, lowering coal import and enhancing reliability of 24x7 power supply.

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