NLC India plans Rs 23,600 crore capex for FY27 with major battery projects
Chennai-headquartered power major NLC India Limited (NLCIL) has announced a capital expenditure plan of Rs 23,600 crore for the 2027 fiscal year (FY27) to boost its power, mining, and renewable energy sectors. The planned investment, which includes joint ventures, represents a major expansion of the public sector enterprise's energy portfolio.
According to NLC India Chairman and Managing Director M Prasanna Kumar, the company has earmarked Rs 19,722 crore of the total FY27 capex for power projects. Additionally, Rs 1,490 crore has been allocated for mining, while Rs 2,388 crore will go toward renewable energy and diversification projects.
A key component of the company's future pipeline is Rs 4,620 crore worth of Battery Energy Storage System (BESS) projects, totaling 3,300 MWh across three contracts. As part of this initiative, NLC India has already signed a Rs 700-crore contract for a 500-MWh BESS project in Tamil Nadu.
The other two BESS projects in the pipeline include a Rs 1,400-crore, 1,000-MWh project in Punjab, and a Rs 2,520-crore, 1,800-MWh project by the Solar Energy Corporation of India (SECI).
The FY27 plan represents a significant increase from previous spending. In FY26, the company recorded its highest-ever annual capex of Rs 9,131 crore, which was an 18% increase over the previous year. Over the last five years, NLC India has invested approximately Rs 27,000 crore in capital expenditure.
These investments are part of NLC India's broader Rs 1.01 lakh crore investment plan through 2030, which covers mining, thermal power, renewable energy, and diversification projects. Under this long-term strategy, thermal power projects will receive 44% of the allocation, while 33% is earmarked for renewable energy. The company aims for renewables to make up 50% of its generation mix by 2030.
To support its renewable energy expansion, NLC India has also received approval from the Government of India to list its subsidiary, NLC India Renewables Ltd (NIRL). The proposed initial public offering (IPO) is expected to launch during the current fiscal year, involving a fresh issue of equity shares and an offer for sale to dilute up to 25% of NLCIL's stake.
