New Delhi – March 2, 2025
In a significant stride toward India’s renewable energy ambitions, NLC India Limited (NLCIL), a Navratna PSU under the Ministry of Coal, has clinched a 200 MW wind power project from SJVN Limited at a competitive tariff of ₹3.74 per kilowatt-hour (kWh). The Letter of Award (LoA) was handed over on February 28, 2025, following NLCIL’s triumph in an e-reverse auction conducted by SJVN on January 17—an event that underscores the growing prowess of India’s PSUs in the green energy arena. As I sit down to write this from the bustling capital, it’s clear: this isn’t just a win for NLCIL but a signal of how India’s public sector giants are pivoting to power a sustainable future.
In a significant stride toward India’s renewable energy ambitions, NLC India Limited (NLCIL), a Navratna PSU under the Ministry of Coal, has clinched a 200 MW wind power project from SJVN Limited at a competitive tariff of ₹3.74 per kilowatt-hour (kWh). The Letter of Award (LoA) was handed over on February 28, 2025, following NLCIL’s triumph in an e-reverse auction conducted by SJVN on January 17—an event that underscores the growing prowess of India’s PSUs in the green energy arena. As I sit down to write this from the bustling capital, it’s clear: this isn’t just a win for NLCIL but a signal of how India’s public sector giants are pivoting to power a sustainable future.
For those tracking the PSU landscape, NLCIL’s journey is a familiar one. Born in 1956 as Neyveli Lignite Corporation, this Tamil Nadu-based behemoth has long been a titan in lignite mining and thermal power generation, churning out 30 million tonnes of lignite annually from its opencast mines in Neyveli and Barsingsar, Rajasthan. Its pithead thermal plants, boasting a 4,240 MW capacity, have kept southern India’s grids humming for decades. But the winds of change—quite literally—are blowing, and NLCIL is riding them with gusto. This latest 200 MW wind project, set to generate 526 million units (MU) of clean energy annually, pushes its wind portfolio past the 300 MW mark, adding to its renewable tally that began with a modest 51 MW wind project in 2013.
The numbers tell a compelling story. At ₹3.74/kWh, NLCIL has bagged a deal that’s both cost-competitive and climate-friendly, offsetting greenhouse gas emissions equivalent to its yearly output. It’s a feather in the cap for Chairman and Managing Director Prasanna Kumar Motupalli, who didn’t mince words about the milestone. “This is a proud moment for NLCIL as we expand our renewable energy footprint,” he said in a statement. “Winning this project strengthens our commitment to sustainable solutions. Our strategy aligns with India’s energy transition goals, and we’re determined to contribute to a greener future.” With a target of 10 GW renewable capacity by 2030, NLCIL is no longer just a lignite king—it’s a renewable contender.
As a journalist who’s tracked PSUs like NTPC, ONGC, and SJVN over the years, I see this as part of a broader trend. India’s public sector, often criticized for bureaucratic lethargy, is showing surprising agility in the renewable race. SJVN, another PSU under the Ministry of Power, has been a key player too, auctioning off projects to bolster the nation’s non-fossil fuel capacity—currently at 203 GW, with a 500 GW target by 2030. The NLCIL-SJVN tie-up is a classic PSU synergy: one leverages its hydropower and renewable expertise to tender, while the other brings its execution muscle to the table. It’s a win-win that could set a template for future collaborations.
But let’s not gloss over the stakes. India’s green push isn’t optional—it’s existential. With global eyes on our climate commitments, projects like this are bricks in the wall of a promised 50% non-fossil energy mix by decade’s end. NLCIL’s pivot from lignite to wind and solar—its 1,404 MW solar plants are already operational—mirrors the transformation NTPC undertook with its solar forays or Coal India’s tentative green hydrogen steps. Yet, challenges loom. Wind projects demand precise site selection, turbine efficiency, and grid integration—hurdles NLCIL must clear within the tender’s timelines to deliver “efficiency and excellence,” as Motupalli pledged.
The financials are worth a nod too. At ₹3.74/kWh, this tariff undercuts many private players, a testament to PSU economies of scale and government backing. For context, solar tariffs have dipped below ₹2/kWh in recent years, but wind, with its higher capital costs, often hovers above ₹3. NLCIL’s bid reflects a tightrope walk between profitability and public good—a balancing act PSUs are uniquely positioned to perform. With a market cap of ₹28,627 crore and shares trading at ₹206.45 as of Friday, the company’s investors might see this as a bullish signal, especially as it diversifies beyond coal’s uncertain future.
From the streets of Neyveli to the policy corridors of Delhi, this project resonates. It’s not just about megawatts—it’s about jobs, cleaner air, and a legacy shift for a PSU rooted in India’s industrial past. As NLCIL accelerates investments in wind, solar, hybrid systems, battery storage, and green hydrogen, it’s clear the old lignite warhorse is galloping toward a new horizon. Will it hit that 10 GW mark by 2030? If this 200 MW coup is any indication, the winds are blowing in its favor.