IPO of renewable unit likely in FY27 as NLC India pushes capacity beyond 10 GW target

NLC India is preparing a major expansion in renewable energy and expects to list its green subsidiary in the fiscal year 2026-27 (FY27), supported by rapid project additions and strong policy approvals. Chairman and Managing Director Prasanna Kumar Motupalli said the company is set to exceed its long-term clean energy target while also ramping up operations at its Ghatampur thermal plant.

Motupalli said NLC India plans to grow its renewable portfolio far beyond its original 10 GW goal for 2030. Starting from 1.4 GW, the company already has more than 8 GW of projects lined up. "Already the projects in the pipeline… they are crossing 8 gigawatts. So, we are hopeful that we will be doing much more than 10 gigawatt by 2030," he said.

For the current fiscal, NLC expects to add about 600 MW of renewable capacity, having already commissioned 160 MW. He highlighted the 600 MW Khavda project and the 810 MW Pugal solar park as major contributors, with both progressing at speed.

To fund this growth and unlock market value, NLC India is advancing the initial public offering (IPO) of its renewable energy arm. "All activities for the listing are in fast progress," Motupalli said, noting that cabinet approval was received recently. He added, "We are hopeful in the first half or latest by quarter three of the next financial year (FY27), we will be coming up with the market."

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Alongside its renewables push, NLC India is strengthening its thermal generation portfolio. The second 660 MW unit of the Ghatampur plant began commercial operations on December 9 and immediately scaled up. "As on date, both the units of Ghatampur are operating at full capacity, more than 660 megawatt," Motupalli said. Work on the third and final unit is running on an accelerated timeline, and the full station is expected to become commercially operational within the fiscal year.

The plant is set to provide a significant boost to the company’s revenue. Once all three units are online, the annual topline contribution is expected at around ₹8,450 crore. For the current year, the contribution is pegged at ₹4,000–4,500 crore, with unit one already adding over ₹2,600 crore.

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On lignite production concerns, Motupalli clarified that the dip in output earlier in the year was not due to land constraints but was aligned with lower demand. "Lignite is we cannot transport it for longer distances. So, whatever is the requirement, the production is done," he said. He added that major land issues have been resolved and the company is targeting 25 million metric tonne of lignite production this year.

NLC India, with a current market capitalisation of ₹33,459.54 crore, has seen its shares fall more than 7% over the past year.

For the full interview, watch the accompanying video

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