NLC India to invest ₹1630 crore in renewable energy arm
NLC India’s board has granted in-principle approval to invest up to ₹1,630.89 crore in one or more tranches in NLC India Renewables Limited (NIRL), the company’s wholly-owned subsidiary for renewable businesses.
The investment will be by way of subscription of equity shares at face value, subject to necessary approvals from the Department of Investment and Public Asset Management (DIPAM) and other authorities, and will go towards funding the Green Energy Projects of NIRL, NLC India said in an exchange filing.
The public sector mining and power generation company’s board also approved borrowing in the form of a term loan in Japanese yen equivalent to $100 million through external commercial borrowing (ECB), from Sumitomo Mitsui Banking Corporation. This will go towards CAPEX funding of renewable projects to be undertaken by the Company through its subsidiaries/group companies, it said.
NLC has formed NIRL as a wholly-owned subsidiary for development of renewable projects in the country. The company currently has an installed renewable energy generation capacity of 1,431 MW.
“The Capex requirement as we projected is ₹1.16 Lakh Crore and for conventional Thermal Power stations it is 70:30 and for Renewables, it is 80:20. With that our equity requirement is around ₹23,000 Crore,” Prasanna Kumar – Chairman & Managing Director, NLC India, said in a recent institutional investors meet.
