NLC India Limited has announced that the Ministry of Finance, through a Gazette notification dated November 27, 2024, has exempted the company from paying capital gains tax on the transfer of its renewable energy assets to its wholly owned subsidiary, NLC India Renewables Ltd (NIRL). This transfer is part of a plan approved by the Central Government under clause (viiaf) of Section 47 of the Income Tax Act, 1961.
The notification formalizes the transfer of capital assets from NLCIL to NIRL, ensuring that the company benefits from tax exemptions for this move. This step aligns with the government’s push to support renewable energy initiatives while simplifying asset restructuring within public sector companies.
NLC India confirmed that this development would not result in any additional financial burden and reaffirmed its commitment to complying with all regulatory requirements.
