Shares of NLC India Ltd, a state-run enterprise under the Ministry of Coal rose nearly 2.5% on Monday after the firm said it has received a significant boost with the recent award of a 450 MW hybrid renewable power project from NTPC Ltd.
NLC India shares gained 2.45% to Rs 234.10 against the previous close of Rs 228.50 on BSE. Market cap of the firm rose to Rs 32,273 crore.
According to a regulatory filing, the project involves the development of wind-solar hybrid power systems in two locations: 300 MW in Bikaner, Rajasthan, and 150 MW in Bhuj, Gujarat. The contract is part of an interstate transmission system (ISTS) and is expected to supply hybrid power to NTPC for a duration of 25 years under a power purchase agreement (PPA).
The contract between NLC India and NTPC does not involve any related-party transactions or cross-holding interests between the promoter groups of either company. This project highlights NLC India’s strategic pivot towards renewable energy, aligning with global trends towards sustainable energy production. The hybrid power supply from the project is anticipated to commence within 24 months from the effective date of the PPA. This initiative underlines NLC India’s commitment to harnessing clean energy and supports India’s renewable energy goals. Despite the announcement, the share price of NLC India remained stable, reflecting a wait-and-watch sentiment among investors.
As a Navratna PSU, NLC India’s aggressive expansion into the renewable sector is noteworthy. The company’s venture into hybrid renewable projects marks a critical step towards diversifying its energy portfolio. In the broader market context, NLC India’s stock performance was in line with expectations, maintaining a steady closing price amidst the announcement. With the hybrid project set to contribute significantly to India’s renewable energy capacity, NLC India continues to reinforce its position as a leading player in the sector. Investors and stakeholders will be keenly observing the progress and execution of this ambitious project over the coming months.
NLC India is engaged in the business of mining of lignite, coal and generation of power by using lignite as well as renewable energy sources and consultancy. The company provides energy and auxiliary services to a diverse customers that includes state distribution firms, commercial enterprises, and industrial consumers.
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