Cabinet approves up to Rs 20,000 crore investment by NTPC to boost renewable energy capacity

New Delhi, July 16 (IANS) As India achieves 50 per cent of its installed electricity capacity from non-fossil fuel sources, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Wednesday approved enhanced delegation of power to NTPC Ltd for investing in NTPC Renewable Energy Ltd. and its other joint ventures/subsidiaries to set up renewable energy capacity with an outlay of up to Rs 20,000 crore.

The Cabinet granted enhanced delegation of power to NTPC Limited from the extant guidelines of delegation of power to Maharatna CPSEs for making investment in NTPC Green Energy Limited (NGEL), a subsidiary company and subsequently, NGEL investing in NTPC Renewable Energy Limited (NREL) and its other JVs/subsidiaries, "beyond the earlier approved prescribed limit of Rs 7,500 crore up to an amount of Rs 20,000 crore for renewable energy (RE) capacity addition to achieve 60 GW capacity by 2032".

According to an official statement, the enhanced delegation given to NTPC and NGEL will facilitate the accelerated development of renewable projects in the country.

"This move will also play a vital role in strengthening power infrastructure and ensuring investment in providing reliable, round-the-clock electricity access across the nation," according to a Cabinet note.

Renewable Energy projects will also generate direct and indirect employment opportunities for the local people atthe construction stage as well as during operations and maintenance (O&M) stage.

This will provide a boost to local suppliers, local enterprises/ MSMEs and shall encourage entrepreneurship opportunities within the country, besides promoting employment and socio-economic development of the country.

India has achieved a landmark in its energy transition journey by reaching 50 per cent of its installed electricity capacity from non-fossil fuel sources -- five years ahead of the target set under its Nationally Determined Contributions to the Paris Agreement.

The country is aiming to reach 500 GW of non-fossil energy capacity by 2030.

As a Central Public Sector Enterprise and the leading Power Utility of the Country, NTPC aims to add 60 GW of Renewable Energy Capacity by 2032, which will help the country in achieving the aforesaid target and move towards the larger aim of having 'Net Zero' emissions by 2070.

NGEL is the flag-bearer listed subsidiary of NTPC Group for renewable energy capacity addition through organic and inorganic growth.

--IANS

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