NLC India has received board approval for an investment of up to Rs 1,630.89 crore in its wholly-owned subsidiary, NLC India Renewables (NIRL), to support its green energy initiatives.

The investment, which will be made in one or more tranches through equity subscription at face value, is subject to clearances from the Department of Investment and Public Asset Management (DIPAM) and other regulatory bodies. The funds will be used to finance NIRL’s renewable energy projects, according to an official exchange filing.

To further support its capital expenditure needs, the board has also cleared borrowing the Japanese yen equivalent of USD 100 million via external commercial borrowing (ECB) from Sumitomo Mitsui Banking Corporation. This borrowing will help fund renewable energy projects undertaken through NLC’s subsidiaries and group companies.

NLC India has formed NIRL to spearhead renewable development and currently operates 1,431 MW of installed renewable capacity. “The Capex requirement as we projected is Rs 1.16 lakh crore, and for conventional thermal power stations it is 70:30 and for renewables, it is 80:20. With that our equity requirement is around Rs 23,000 crore,” said Prasanna Kumar, Chairman & Managing Director of NLC India.