NLC India Plans ₹4,500 Crore IPO for Green Energy Push by June 2025 – Major Solar Projects in Tamil Nadu and Andaman

New Delhi: NLC India Ltd, a government-owned company, is planning to raise around ₹4,500 crore through an Initial Public Offering (IPO) for its subsidiary, NLC India Renewables Ltd (NLCIRL), between April and June 2025. This was confirmed by Prasanna Kumar Motupalli, the Chairman and Managing Director (CMD) of NLC.

The company will sell 51% of its shares in the renewable energy arm. Currently, NLC is transferring all of its renewable energy assets, which are mostly solar projects worth around ₹8,000 crore, to this subsidiary.

NLC India has a total power generation capacity of 6,071.06MW, with most of it coming from lignite and coal-based energy. Renewable energy projects account for about 1,431MW. NLC operates solar power plants with a capacity of 1,380MW in Tamil Nadu and the Andaman & Nicobar Islands, along with a 51MW wind power plant in Tamil Nadu’s Tirunelveli district.

Expansion Plans and Renewable Energy Goals

NLC is also aiming to contribute 10.11GW of renewable energy to India’s goal of installing 500GW of non-fossil fuel power by 2030. This will come from various renewable energy projects across Tamil Nadu and other states, depending on their feasibility. The company is also involved in solar park projects run by different state governments and has joined the International Solar Alliance.

NLCIRL was set up in FY24 to manage, consolidate, and optimize NLC’s renewable energy assets. Additionally, NLC India Green Energy Ltd, a step-down subsidiary, was created to focus on future renewable energy projects.

Focus on Sustainability and New Projects

In its annual report for FY24, the company stated it is modernizing its power infrastructure to meet growing energy demands while focusing on sustainability. NLC is also exploring innovative projects like turning lignite into methanol and working on green hydrogen initiatives.

Government Push for Public Listings of Renewable Subsidiaries

The Indian government is encouraging public sector companies to list their renewable energy subsidiaries on the stock market. In September, it was reported that the government wants these companies to create value for themselves and their shareholders by listing their renewable assets publicly, rather than selling them to private companies.

Other public sector companies, such as NTPC Green Energy Ltd and SJVN Green Energy Ltd, are also planning IPOs for their renewable energy businesses, with NTPC’s ₹10,000 crore IPO expected in November. Solar Energy Corp. of India (Seci) also plans to go public within two years.

This move aligns with the government’s larger asset monetization and disinvestment plans. So far, ₹3.58 trillion has been raised in three years under the National Monetization Pipeline, with ₹1.56 trillion raised in FY24 against the target of ₹1.8 trillion.