NLC India Limited (NLCIL), a Navratna Central Public Sector Undertaking under the administrative control of Ministry of Coal, is a leading player in lignite mining and power generation since 1956. In addition to its thermal power operations and mining business, NLCIL has emerged as a key contributor to India’s renewable energy sector, focusing on solar and wind power projects across India. NLC India Limited is pleased to announce that the Ministry of Finance, through a Gazette of India Notification dated November 27, 2024, has granted Capital Gains Tax exemption under Section 47 (viiaf) of the Income Tax Act for the transfer of renewable energy assets to its wholly owned subsidiary, NLC India Renewables Limited (NIRL). As a part of National Monetisation Pipeline (NMP) framework of Govt of India, NLC India Ltd has formulated plan to monetise its existing Renewable Assets. This significant exemption paves the way for efficient monetization of NLCIL’s renewable energy assets, supporting its strategic growth initiatives and adhering to Government of India’s policies. It marks a key milestone in the company’s journey toward enhancing its renewable energy footprint and aligns with its commitment to sustainability and financial prudence. NLCIL currently operates 1,431 MW of renewable energy capacity and has set an ambitious target of reaching 10,110 MW by 2030. This sevenfold increase is a crucial part of India’s broader energy transition, contributing to the national goals of achieving 500 GW of non-fossil fuel energy capacity and meeting 50% of energy requirements through renewables by 2030, as outlined in the country’s Net-Zero Emissions roadmap for 2070.Speaking on this development, M. Prasanna Kumar, Chairman and Managing Director of NLC India Limited, stated:

“This exemption demonstrates the government’s unwavering support for NLCIL’s renewable energy initiatives. It not only reinforces our commitment to a greener future but also enables us to strategically invest in sustainable energy projects, ensuring long-term value creation for our stakeholders.”

NLCIL expresses its sincere gratitude to the Ministry of Finance, Ministry of Coal, and all stakeholders for their support in facilitating this exemption. The company remains dedicated to driving India’s energy transition through innovation and sustainability.