NLC India Plans Rs 23,600 Crore Capex and Rs 4,620 Crore Battery Projects

NLC India Limited, headquartered in Chennai, has planned a capital expenditure of ₹23,600 crore for the 2027 financial year (FY27) to expand its power, mining, and renewable energy infrastructure. The public sector enterprise has also lined up Battery Energy Storage System projects worth ₹4,620 crore as part of its clean energy transition.

According to M Prasanna Kumar, Chairman and Managing Director of NLC India, the FY27 capex plan includes the company's joint ventures. Out of the total allocation, ₹19,722 crore is earmarked for power projects, ₹1,490 crore for mining, and ₹2,388 crore for renewable energy and diversification.

The company’s Battery Energy Storage System (BESS) pipeline comprises three contracts totaling 3,300 MWh. NLC India has already signed a ₹700-crore contract for a 500-MWh BESS project in Tamil Nadu. The other two upcoming projects in the pipeline include a ₹1,400-crore, 1,000-MWh project in Punjab and a ₹2,520-crore, 1,800-MWh project by the Solar Energy Corporation of India.

In the 2026 financial year, NLC India recorded its highest-ever annual capex of about ₹9,131 crore, marking an 18 percent increase over the 2025 financial year. Over the last five years, the company has invested approximately ₹27,000 crore in capital expenditure.

These short-term investments are part of a larger ₹1.01 lakh crore investment plan outlined through 2030, covering thermal power, mining, renewable energy, and other diversification projects. By 2030, renewable energy is expected to account for 50 percent of NLC India's own generation mix. Of the total planned FY30 capex, 44 percent will be allocated to thermal power projects, while 33 percent is earmarked for renewable energy.

Additionally, the Government of India has approved the listing of NLC India Renewables Limited, which will take over the renewable energy business of NLC. The proposed initial public offering, expected to launch in the current fiscal year, will involve diluting up to a 25 percent stake in the unit through a fresh issue of equity shares and an offer for sale.