Connect with us

Hi, what are you looking for?

The Indian government has encouraged the development of renewable energy to the point that coal companies are now investing in solar and wind energy.

Clean Power

Indian Coal Producer To Invest $80 Million in Solar, Wind Energy Projects

The Indian government has encouraged the development of renewable energy to the point that coal companies are now investing in solar and wind energy.

Government-owned companies in India are responding to the calls by the government to boost investment in renewable energy projects.

Cooling towers at a power plant owned by Neveyli Lignite Corp.

Cooling towers at a power plant owned by Neveyli Lignite Corp.

Neyveli Lignite Corporation (NLC), a big coal producer and power generator located in Southern India, has announced that it will invest ₹500 crore (US$82 million) to set up 25 MW solar photovoltaic and 55 MW wind power capacity.

The company has given the order for installation of 10 MW solar PV project to another public sector company, Bharat Heavy Electricals Ltd (BHEL). The push for renewable energy projects has increased among Indian companies over the last few years as the government made mandatory that a part of the profits be invested for fulfilling corporate social responsibility.

Investing in renewable energy projects also brings in substantial tax benefits that, in turn, boosts profitability, a significant economic issue in the recent general elections. Big public sector companies like NHPC, BHEL, Hindustan Salts and NTPC have all announced plans to invest millions of dollars in large-scale renewable energy projects. These projects include ultra mega solar power projects with capacities up to 4,000 MW.

Another major advantage of a thermal power producer installing renewable energy projects is the ease in sale of power. Indian utilities are required to buy a set minimum percentage of electricity from renewable energy sources. A number of them, however, claim that there aren’t enough renewable energy producers for them to fulfill their Renewable Purchase Obligation.

NLC is also setting up large coal-based power plants. The company can easily bundle the power from solar and wind energy projects with that produced from its coal power plants.

Public sector companies are also likely to buy solar panels and other equipment from Indian companies rather than import them from other countries. Promotion of domestic solar power equipment is another major target of the Indian government. With several incentives on offer, and an implicit government directive, the Indian public sector companies are looking to aggressively invest in renewable energy infrastructure.

Image credit: Neyveli Lignite Corporation

Don't want to miss a cleantech story? Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.
Written By

Mridul currently works as Head-News & Data at Climate Connect Limited, a market research and analytics firm in the renewable energy and carbon markets domain. He earned his Master’s in Technology degree from The Energy & Resources Institute in Renewable Energy Engineering and Management. He also has a bachelor’s degree in Environmental Engineering. Mridul has a keen interest in renewable energy sector in India and emerging carbon markets like China and Australia.


You May Also Like


As the world accelerates the transition to electric vehicles, it is important for the world’s largest markets to lead the way in terms of...


At the coal face of a conference that involved governmental figures, academics, logistics customers and OEMs, the detailed technical conversations are almost all about...


After a very slow start, the Indian battery-electric car market is starting to get exciting. BYD is expanding its presence in the country, shifting...


India’s electric 2-wheeler market has been booming over the last few years. However, the electric car sector has been pretty slow. India’s electric car...

Copyright © 2023 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.