NLC India Ltd (formerly Neyveli Lignite Corp. Ltd) intends to invest Rs 10 billion ($125 million) in a green energy joint venture it is forming with Assam Power Development Co. Ltd. (APDCL).
The investment proposal has already been submitted to the Union government, with the JV establishing a 1 gigatonne (GW) initial solar power capacity in Assam for around 5,500 crore. These solar power projects are expected to cost Rs 55 million per megawatt (MW) and will be constructed in India in stages, with 200 MW added each year.
NLC will fund this equity with internal accruals. Last year, NLC signed an MoU with APDCL that included plans for green energy projects, including hydropower projects.
Attracted by India’s green energy trajectory, traditional state-run miners are finalising clean energy plans, such as Coal India Ltd (CIL), which plans to invest around Rs 150 billion in solar power generation capacity by 2024.
India has 167 GW of installed renewable energy capacity, with the country’s electricity demand increasing from current per capita electricity consumption levels of around 1255 kilowatt-hours (kWh). India’s electricity demand is expected to rise by 9.5% in the current fiscal year, with peak electricity demand rising by 6.82%.
India met an all-time high electricity demand of 211.6 GW in June 2022, with 225 GW expected during the upcoming summer season.
To expand, NLC has formed Neyveli Uttar Pradesh Power Ltd (NUPPL), NLC TamilNadu Power Ltd (NTPL), MNH Shakti Ltd, and Coal Lignite Urja Vikas Pvt. Ltd. (CLUVPL).
NLC currently has 1.421 GW of clean energy capacity and 660 MW in the pipeline.
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