India government has significantly increased NTPC Ltd’s investment ceiling from ₹7,500 crore to ₹20,000 crore, allowing India’s largest power generator to accelerate its renewable energy push.
This decision empowers NTPC to channel greater funding into its green energy subsidiary NTPC Green Energy Ltd (NGEL), as well as various joint ventures and subsidiaries, with the aim of achieving 60 GW of renewable energy capacity by the financial year 2032.
The enhanced investment limit is expected to support near-term goals, including reaching 19 GW of renewable capacity by 2027. This vision aligns with India’s long-term clean energy strategy and comes as part of the government’s mission to promote sustainable energy while ensuring reliable and affordable power across the country.
NGEL, a subsidiary of NTPC, is at the forefront of implementing large-scale renewable energy projects including solar, wind, hybrid systems, green hydrogen, and battery energy storage. The increased funding authority allows NTPC to execute these projects more efficiently and attract partnerships to mobilize private and international capital.
With total investments required to meet the 60 GW renewable energy target estimated at over ₹5 lakh crore, this policy move is a critical step in unlocking financial agility for NTPC and enabling faster decision-making for project execution.
In parallel, India has achieved a major milestone in its energy transition journey. As of June 2025, over 50 percent of India’s total installed electricity generation capacity now comes from non-fossil fuel sources, including solar, wind, hydro, nuclear, and biomass.
Out of the country’s approximate 484 GW of installed capacity, more than 242 GW is sourced from non-fossil energy. This achievement comes five years ahead of the 2030 target under the Paris Agreement, in which India had pledged to reach 50 percent of its installed capacity from non-fossil sources by the end of the decade.
However, while installed capacity from renewables has reached parity with fossil fuels, actual electricity generation still remains dominated by coal. In 2024, coal power accounted for around 75 percent of total electricity generated in India, with renewables contributing approximately 24 percent.
This gap reflects the intermittency of renewable energy and the continued need for grid stabilization and storage solutions to improve utilization. The government is also continuing its investments in coal-based power, with plans to add about 80 GW of new coal capacity by 2032 to meet rising electricity demand.
India remains committed to reaching 500 GW of non-fossil fuel capacity by 2030 and is implementing supporting measures like green hydrogen development, battery storage deployment, and renewable equipment manufacturing.
The increase in NTPC’s investment limit reflects a clear policy direction to scale up clean energy through state-led enterprises, while maintaining energy security and supporting economic growth through diversified energy investments.