NLC India Ltd shares climbed after the company announced plans to invest Rs 3,720 crore in its wholly-owned subsidiary, NLC India Renewables Ltd (NIRL), to bolster green energy projects. The investment will be made in tranches, subject to approval from the Department of Investment and Public Asset Management (DIPAM).
As of 9:35 am the shares were trading 2.72% higher at ₹243.45 on NSE.
As part of its asset monetisation strategy, NLC India will transfer renewable assets valued at Rs 6,263 crore to NIRL in exchange for equity in the subsidiary. The renewable assets include projects aimed at expanding green energy capacity, particularly in Gujarat and Rajasthan.
The company stated that the investment would support ongoing green projects under the monetisation plan and facilitate the development of new renewable power projects. As of September 30, 2024, the net book value of these renewable assets was reported at Rs 6,263 crore.
Additionally, NLC India has approved the issuance of letters of comfort for borrowing by its subsidiaries, including NLC India Renewables, NLC India Green Energy, Neyveli UP Power, and NLC Tamil Nadu Power.
This strategic move highlights NLC India’s commitment to advancing its renewable energy footprint while aligning with the government’s emphasis on sustainable development. Shares of NLC India were trading higher following the announcement.
