NLC India to raise funds via IPO of arm for clean energy expansion: CMD

Neyveli (Tamil Nadu), Jul 21 (PTI) Lignite-to-power producer NLC India Ltd (NLCIL) is planning to raise funds through an initial public offering (IPO) of its wholly owned subsidiary NLC India Renewables Ltd by the first quarter of the next financial year, company’s Chairman and Managing Director (CMD) Prasanna Kumar Motupalli said.

In an interview to PTI here, the CMD said the PSU is planning to ramp up its renewable energy capacity from the current 1.4 GW to 6 GW by 2030.

The funds raised via the IPO will be used in its clean energy expansion plans, he said.

The company also plans to arrange soft loans from foreign companies and banks for this purpose, the CMD explained.

“As on date… the existing assets of NLCIL are to be transferred to that company (NLC India Renewables Ltd). For transfer of that assets, some exemption is required from the Government of India. So that process is on.

“So, we are expecting to get that clearance from the government by around October. In the first quarter of the next financial year that listing (IPO) will happen,” he explained.

The PSU, he said, has formed another subsidiary NLC India Green Energy Ltd for new green energy assets.

Going forward to meet the energy needs of the country, a proper balance between the conventional thermal and renewable power generation will be required, he said.

As a result, NCL India Ltd, a carbon neutral company, is adding the capacity in both thermal and renewable energy space.

NLC India is a 6 GW company consisting of 1.4 GW renewable capacity and 4.6 GW thermal capacity. NLC India — the first company in the country to add 1 GW renewable capacity — has plans to scale up its power capacity to 17 GW by 2030.

“So, from the current 4.6 GW, we want to take to 11 GW in the conventional and from the current 1.4 GW of renewables we want to take it to 6 GW by 2030.

For this capacity addition, 100 million tonnes of coal and lignite production by 2030 and other diversification businesses, a capital infusion of almost one lakh crore is required, he explained.

While NLC India Renewables Ltd was incorporated to pursue asset monetisation of renewable energy projects, NLC India Green Energy Ltd was formed to undertake future renewable energy projects of NLCIL.

State-owned NLC India Ltd had reported an 86.2 per cent drop in consolidated net profit to Rs 114.23 crore for the March quarter due to lower income.

NLC India is a navratna company under the Ministry of Coal. Its core business is mining and power generation.