Why PSU Renewable Energy Stocks Like NTPC Green, NTPC & NLC India Rallied Up To 4% Today?

Shares of PSU renewable energy companies were in focus on Wednesday after the government approved major investments in the sector. NTPC Green Energy Ltd jumped 1.96% to Rs 112.10, while NLC India Ltd surged 4.08% to Rs 238.70. Parent company NTPC Ltd also edged up, trading 0.06% higher at Rs 342.35.

The gains came as investors cheered the government’s green light for Rs 27,000 crore worth of renewable energy projects to accelerate capacity expansion and support India’s clean energy goals.

Under this plan, NTPC Limited has been allowed to invest up to Rs 20,000 crore through its green energy arm to help the company achieve 60 GW of renewable energy capacity by 2032.

Separately, NLC India Limited has been cleared to invest Rs 7,000 crore in its renewable energy subsidiary as part of its goal to build 10.11 GW capacity by 2030 and expand to 32 GW by 2047.

These approvals are aimed at speeding up project development, supporting India’s target of 500 GW non-fossil energy by 2030, and strengthening the country’s energy security while creating jobs and reducing carbon emissions.

The enhanced delegation allows NTPC Green Energy Limited (NGEL) to make investments beyond the earlier prescribed limit of Rs 7,500 crore, giving the company flexibility to scale renewable projects faster. NGEL will also channel funds into NTPC Renewable Energy Limited (NREL) and other subsidiaries and joint ventures.

NGEL already has a renewable portfolio of about 32 GW, including 6 GW operational projects, 17 GW contracted or awarded capacity, and 9 GW under development.

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For NLC India Limited, the Cabinet has granted a special exemption from standard investment rules for Navratna public sector enterprises. The approval allows NLCIL to invest Rs 7,000 crore in NLC India Renewables Limited (NIRL) without prior approvals or the usual 30% net worth ceiling on investments.

NIRL will be the main platform driving the company’s green energy expansion and is expected to participate in fresh bids for renewable projects. Currently, NLCIL operates seven renewable assets with 2 GW capacity, which will be transferred to NIRL.

The government said that both companies are playing a central role in India’s push to build a clean energy ecosystem and meet international commitments to tackle climate change. This will not only boost renewable capacity but also create direct and indirect employment during construction and operation, support local businesses and MSMEs, and contribute to inclusive growth.