NLC India Rises on 200 MW Solar Deal with Telangana

NLC India Ltd (NLCIL) shares surged following the announcement of a significant 200 MW solar power agreement with the state of Telangana. Signed under the Central Public Sector Undertaking (CPSU) Scheme, the deal commits NLCIL to supply solar energy to Telangana for 25 years. This marks NLCIL's first foray into renewable energy for the state, supplementing its existing 234 MW thermal power supply.

The solar project, expected to be commissioned by June 2025, will generate approximately 1,300 crore units of green power over its lifetime. This output is projected to offset around 90 lakh tonnes of carbon emissions, contributing significantly to environmental sustainability. In line with the Atma Nirbhar Bharat initiative, NLCIL will utilize state-of-the-art technology, including single-axis trackers and domestically produced high-efficiency solar modules, reinforcing its commitment to using local resources.

This deal is a strategic move for NLCIL as it expands its renewable energy portfolio. The project not only supports Telangana in meeting its Renewable Purchase Obligation but also ensures the state receives affordable and sustainable green power. The long-term agreement is expected to bolster Telangana’s energy security while promoting a cleaner energy mix.

NLCIL, operating under the Ministry of Coal, has been a pioneer in India's renewable energy sector. The company is notably the first Central Public Sector Enterprise to achieve 1 GW of solar power generation in India. This latest deal further solidifies its position as a key player in the country's transition to renewable energy.

The agreement has positively impacted NLCIL’s stock, reflecting investor confidence in the company’s strategic direction and its growing role in the renewable energy sector. As the project progresses, it is expected to contribute significantly to both NLCIL's revenue and India's broader renewable energy goals.

News by Rahul Yelligetti