NLC India Ltd, the Navratna public sector undertaking, is embarking on a historic transformation. The company has unveiled a colossal capital expenditure plan of ₹1.17 lakh crore to be deployed over the next four to five years. This strategic move marks a decisive shift from its traditional identity as a lignite-focused utility towards becoming a diversified, integrated energy and mining powerhouse.
A Massive Investment Blueprint for a Green Future
The financial outlay is meticulously structured to fuel this multi-pronged evolution. A significant portion, ₹41,000 crore, is dedicated to green energy initiatives. This includes ₹22,000 crore for upcoming renewable energy projects and ₹10,000 crore for pumped hydro storage. The remaining funds will support other clean-energy ventures.
Simultaneously, the company is allocating ₹50,000 crore to expand its thermal power projects and ₹14,000 crore for the modernization and expansion of its mining operations. An additional ₹11,000 crore is reserved for pioneering diversified ventures. These include establishing EV charging infrastructure, pioneering lignite-to-coal gasification projects, and converting mining overburden into sand.
The 2030 Vision: Capacity, Decarbonization, and Diversification
The corporate roadmap is clear and ambitious. By 2030, NLC India aims to build a total mining capacity of 104.35 million tonnes per annum (MTPA). It also targets achieving an installed capacity of 10 gigawatts (GW) each in both thermal and renewable power. This vision is designed to align with India's long-term decarbonization goals while strengthening national energy security.
Currently, the Neyveli-headquartered company has an integrated lignite-mining capacity of 30.1 million tonnes and a coal-mining capacity of 20 million tonnes, totaling about 50 million tonnes annually. On the power front, it plans to boost thermal capacity from the existing 6GW to 10GW and skyrocket its renewable capacity from about 1.6GW to 10.1GW.
The diversification strategy is multi-layered, focusing on:
- Aggressive scaling of renewable energy generation.
- Developing critical energy-storage infrastructure.
- Creating ecosystems ready for green hydrogen production.
- Pursuing lignite-to-methanol conversion projects.
- Building a nationwide electric vehicle charging network.
Tamil Nadu at the Heart of Expansion and Innovation
While executing projects across several states, NLC India's home state of Tamil Nadu is set for significant development. According to Chairman and Managing Director Prasanna Kumar Motupalli, the company will add 1,000MW of high-efficiency thermal capacity and upgrade existing lignite-based units in the state over the next five to six years.
On the renewables front, new solar, wind, and hybrid plants integrated with battery storage are in the pipeline. NLC already operates over 1.4GW of renewable projects in Tamil Nadu and is now preparing to deploy 500 MWh of Battery Energy Storage Systems (BESS) connected to substations in southern districts to balance renewable energy supply. The feasibility study is complete, and tenders have been floated.
"We are participating in BESS tenders across the country as well. Storage will play a pivotal role in renewable integration," Motupalli noted. The company's medium-term plan envisions building 5GWh of BESS capacity nationwide.
Pumped Storage and New-Age Ventures
NLC is also advancing pumped storage projects (PSPs), considered a key anchor for future grid stability. Partnerships with multiple state governments are under discussion. Preliminary studies for PSPs in the Neyveli mine voids are complete, and feasibility assessments are underway for sites in Tamil Nadu and Odisha.
"PSPs offer clear advantages over other storage technologies. However, obtaining environmental clearances and creating evacuation infrastructure remain crucial challenges," Motupalli stated.
The foray into electric mobility includes plans for EV-charging corridors across its operational regions and key highways, featuring DC fast-charging stations and solar-powered charging hubs.
This transformative journey builds on a legacy of strong performance. NLC India was the first central PSU to achieve 1GW of renewable capacity, has paid consistent dividends for 26 years, and has remained profitable for 48 consecutive years. The Government of India holds a 72.20% stake in the company, which has total assets of around ₹60,943 crore and a net worth of ₹19,966 crore. The new portfolio mix is expected to ensure long-term revenue stability and reduce dependence on lignite in a rapidly evolving energy landscape.
