New Delhi: The Board of Directors of NLC India Limited has approved the incorporation of a new wholly-owned subsidiary, NLC India Green Energy Limited, for undertaking upcoming renewable energy (RE) projects. Neyveli Lignite Corporation of India Limited (NLCIL), which is primarily into mining of lignite and thermal power generation, is looking to diversify its portfolio to pivot towards renewable energy. Earlier in June this year, the Central Public Sector Enterprise (CPSE) formed another subsidiary, NLC India Renewables Ltd (NIRL), to manage its existing RE assets.
The decision to form a separate subsidiary for undertaking future RE projects was taken at a board meeting held on Friday. The CPSE informed the stock exchanges about the meeting and the decision through a regulatory filing, “… we write to inform that the Board of Directors at their meeting held on October 06, 2023, inter-alia has considered and approved the following: Incorporation of Wholly Owned Subsidiary to undertake the future renewable Projects of NLCIL with the name and style of ‘NLC India Green Energy Limited’ and/or any other name as may be made available /approved by Ministry of Corporate Affairs.”
The subsidiary will have an “… Authorised Capital of Rs 50 Crore and to make an initial investment of Rs 10 Lakh as Paid-up Share Capital towards 1,00,000 equity shares of Rs 10/- each,” said NLC. “The proposal is for the formation of a new Wholly-Owned Subsidiary (WoS) by subscribing to the equity shares of WoS,” said NLC.
The company is yet to announce its net zero target. In a recent interview to a news website, NLC India Chairman and Managing Director (CMD) Prasanna Kumar Motupalli was quoted as saying that the implementation of renewable energy targets through RPO (Renewable Purchase Obligation) and RGO (Renewable Generation Obligation) will itself guide the company’s trajectory towards green energy targets.