NLCIL Advances Green Hydrogen, Battery Storage, and Sustainability Initiatives; Targets Achieving 10 GW Each of Thermal and Renewable Power Capacity by 2030

NLCIL Advances Green Hydrogen, Battery Storage, and Sustainability Initiatives; Targets Achieving 10 GW Each of Thermal and Renewable Power Capacity by 2030

The Electrical Post

NLC India Limited (NLCIL), a distinguished Navratna enterprise of the Government of India, is committed towards addressing the nation’s energy needs through sustainable and responsible business practices. Established in 1956, the Company is engaged in lignite/coal mining and power generation. Over the years, it has also diversified into renewable energy and coal mining. As a leading Central Public Sector Enterprise (CPSE), NLCIL plays a key role in meeting the electricity demands of multiple states, including Tamil Nadu, Andhra Pradesh, Karnataka, Kerala, Telangana, Rajasthan and the Union Territory of Puducherry and Andaman.

Prasanna Kumar Motupalli, Chairman and Managing Director of NLCIL, said in the annual report for FY 24-25, FY 2024–25 was a landmark year for NLCIL, marked by record lignite and coal production, commissioning of Unit-I at Ghatampur Thermal Power Station, robust renewable energy progress, and highest-ever capex of ₹7,736 crore. Revenue grew 17.55% to ₹15,283 crore, with record PAT of ₹2,714 crore. Strategic expansions in mining, renewables, and critical minerals strengthened our future readiness. Looking ahead, we are on course to achieve 104.35 MTPA mining capacity, over 10 GW each in thermal and renewable power by 2030, while advancing green hydrogen, battery storage, and sustainability initiatives—driving energy security and a cleaner, inclusive future for India.

Operational Performance 

The performance of NLCIL during FY 2024-25 has been exemplary, registering robust growth across our core businesses. Our lignite and coal production grew by 14% over the previous year. This was led by focused operational improvements and a resolution of long-standing challenges, especially in land acquisition at Neyveli. Notably, the Talabira II & III coal mine achieved 17.2 Million Tonnes Per Annum (MTPA) production, a remarkable 36% increase over last year, solidifying its role as a cornerstone of our fuel security strategy. A major modification has been carried out in Thermal Power Station II Expansion Fluidised Bed Heat Exchangers, to improve the power generation, and it is expected to significantly improve the long-term performance and reliability of the plant. Importantly, most of our other generating units not only reached the targets but overshot them. A milestone achievement this year was the commissioning of Unit-I of Ghatampur Thermal Power Station (GTPS) in December 2024, which has already contributed around 1.2 BU by the end of March 2025. This feat has enabled your Company to join the elite club of supercritical thermal operations. NLCIL is poised to set new benchmarks in efficient and sustainable thermal power generation.

Financial Performance 

The year under review witnessed significant progress across our strategic priorities and operational excellence, translating into strong financial performance. Revenue from operations grew by 17.55% to ₹15,283 crore in FY 2024-25, compared to ₹13,001 crore in FY 2023-24. We reported our highest-ever EBITDA of ₹6,513 crore (₹5,556 crore in FY 2023-24) and delivered all time highest ever PAT of ₹2,714 crore, up from ₹1,868 crore in the previous year and this has resulted in substantial increase of Earnings Per Share. Market capitalisation has touched its all time high of more than ₹43,000 crore. Your Company has been granted Capital Gains Tax exemption under Section 47 (viiaf) of the Income Tax Act, 1961, in respect of the transfer of renewable energy assets to NIRL by the Ministry of Finance. Your Company has been granted approval to invest upto ₹7,000 crore in various projects either directly or through joint ventures, beyond the limits prescribed by Navratna guidelines of DPE. This investment is also exempt from the ₹1,000 crore limit in a single entity and the overall ceiling of 30% of net worth by the Cabinet Committee on Economic Affairs (CCEA).

Record Capex Achievement 

FY 2024-25 was a landmark year for NLC India Limited as the Company achieved its highest-ever capital expenditure of ₹7,736.10 crore, exceeding the Ministry of Coal’s target of ₹3,040 crore. This reflects not just the scale of our ambition but also our determination to accelerate projects that are central to our long-term growth and transformation. Our investments during the year were strategically directed across mining, thermal, renewable energy and supporting infrastructure.

Thermal Power Projects

 A major milestone was the commissioning of Unit-I of Ghatampur Thermal Power Station (660 MW) in December 2024. Unit II & III are under construction and will consolidate our position in the supercritical category, improving efficiency and lowering emissions.

Lignite to Methanol Project 

With a planned capacity of 0.40 MTPA methanol production, this project is envisaged as a strategic diversification to support India’s energy security and clean fuel roadmap. Although the revised DPR indicates cost escalation and financial viability challenges due to existing methanol prices in the market, NLCIL continues to engage with stakeholders and evaluate options for future development. This underlines our commitment to innovation in lignite-based clean fuel technologies.

Green Hydrogen Pilot 

Plant NLCIL is advancing a 4 MW Green Hydrogen pilot project at Neyveli, using solar power as the input. The plant will have the capacity to produce 300 kg of hydrogen per day of 99.999% purity and will operate during sunshine hours. It is in the advanced stage of procurement of electrolysers. On commissioning, this will position NLCIL among the early movers in India’s green hydrogen economy, paving the way for large-scale adoption in future.

Battery Energy Storage System (BESS) and Pumped Storage

Through its subsidiary NIRL, NLCIL has won a 250 MW/500 MWh Battery Energy Storage System project in Tamil Nadu and also pursuing for the same in other States as well. Further, pumped storage projects are being pursued in Tamil Nadu and Odisha to strengthen grid stability and renewable energy integration.

Looking Ahead

We aspire to achieve 104.35 MTPA mining capacity, more than 10 GW in thermal power capacity and 10 GW in renewable energy capacity by 2030 in alignment and contribution to GoI’s Energy Security and Clean Energy and continuous reduction in carbon intensity through supercritical and emerging clean technologies. The coming year holds tremendous promise for NLC India Limited, as several of our major projects move towards commissioning and critical milestones. Commissioning of the remaining two units of Ghatampur Thermal Power Station (2 × 660 MW) will add 1,320 MW of supercritical capacity, enabling the station to achieve its Commercial Operation Date (CoD). This will mark a quantum jump in our thermal generation, significantly strengthening the Company’s baseload contribution to the national grid. In the renewable energy space, multiple projects are poised for commissioning.

Together, these renewable additions will meaningfully increase our clean energy footprint and reinforce NLCIL’s role in supporting India’s energy transition. Our upcoming projects such as Pachwara south, NUPPL, Machhakata (Revised), New Patrapara South, North Dhadu (Western Part) and Neyveli Mine III are expected to bring us closer to our objective of achieving 104.35 MTPA mining capacity, ensuring secure and sustainable fuel supply for our growing generation portfolio. With significant capacity additions, renewable energy integration and mining advancements, the Company is poised to embark on a strong growth trajectory, making way for a bright and sustainable future for all stakeholders.
 

Published at : Sep 08, 2026 07:40 AM (IST)

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