NLC India Plans ₹1.25 Lakh Cr Capex By 2030! Bets Big On Renewable Energy, What's Behind The Huge Capex Announcement? Watch Prasanna Kumar Motupalli, CMD, NLC India Ltd on ET Now.
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Questions asked in this interview
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0:00Help us understand, what are the key projects that you are aiming for with this particular capex, and along with that, how do you plan to fund such aggressive and such big a capex?
Prasanna Motupalli, CMD of NLC India joining us on the show right now. Very good morning and thank you so much for your time. Firstly, you recently announced a capex of 1.25 lakh crores. That's a massive one, especially in the renewable capacity. Help us understand, what are the key projects that you are aiming for with this particular capex, and along with that, how do you plan to fund such aggressive and such big a capex?
Good morning, madam. As NLC India is a 6-7 gigawatt company, we are targeting to take this to 20 gigawatts by 2030. Out of this, from the current 5.3 thermal to 10 gigawatts and 1.4 gigawatts renewables to 10 gigawatts. So by 2030, our renewable capacity will be more than the conventional capacity. So renewable capacity we are targeting to increase almost seven times, while the entire country and globe is targeting to double or triple their renewable capacity. We are targeting to increase our renewable capacity seven times. So for all these capacity additions, we require a capex of 1.25 lakh crore. Most of this capex is for the renewable capacity and the green initiatives, the storage initiatives which NLC is taking.
Okay. And also help us with the timeline if you have one for the capex that you have just announced, a 1.25 lakh crore capex. Help us with how you plan to phase this capex amount, and especially the 65,000 crore that has been separately earmarked for renewables itself. What could the timeline here look like?
The renewable capacity we are targeting to complete by 2030. The capex will be progressively spent. So as on date, 1.4 gigawatts we are operating and around 2.5 gigawatts renewable capacity is under construction in different states of the country, Gujarat, Rajasthan, Tamil Nadu and other places. So this renewable capacity, 5,000 megawatts, almost more than half of what we are investing for renewable and green initiatives, that will be spent in the next 2-3 years and the entire amount will be spent in the next 5 years. So by 2030, we are targeting to spend the entire amount and add the full capacity, and work is in fast progress in that direction.
Indeed, Mr. Motupalli, all eyes on that. But so how do you plan to fund this sort of a big capex? What sort of a mix are you working with, or you plan to work with, with respect to internal accruals, some bit of a loan, and maybe the IPO of your renewable arm? How do you plan to fund this capex?
This 1.25 lakh crore capex. We will be having a 70:30 debt-equity ratio for conventional plants and 80:20 for renewable plants. So we require around 22 to 23,000 crores of equity, and we will be funding this equity through internal sources. That is one point. And second, yesterday there was a cabinet decision allowing NLC to invest 7,000 crores in our own subsidiary, NLC India Renewable Energy Limited. So we will be going for asset monetization of our existing renewable assets of more than 6,500 crores, and then with the internal resources and with the asset monetization of the renewable sources, we are confident that we will be able to fund our capex requirement.
Okay. And let's just throw some light on individual segments. Now in your entire capex cycle, help us understand if thermal and mining investments will be frontloaded, or would that be a part of some backend in this capex cycle? And how are you planning to ensure execution efficiency across such a large multi-segment investment plan?
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Motupalli, P. (2025, July 17). NLC India Plans ₹1.25 Lakh Cr Capex By 2030! Bets Big On Renewable Energy | Prasanna Kumar Motupalli [Interview transcript]. ET Now. CEOInterviews.AI. https://ceointerviews.ai/interview/2874545/
MLA
Prasanna Motupalli. "NLC India Plans ₹1.25 Lakh Cr Capex By 2030! Bets Big On Renewable Energy | Prasanna Kumar Motupalli." ET Now, 17 Jul. 2025. Transcript, CEOInterviews.AI, https://ceointerviews.ai/interview/2874545/.
BibTeX
@misc{motupalli2025_2874545,
author = {Prasanna Motupalli},
title = {NLC India Plans ₹1.25 Lakh Cr Capex By 2030! Bets Big On Renewable Energy | Prasanna Kumar Motupalli},
howpublished = {Interview transcript, ET Now. CEOInterviews.AI},
year = {2025},
month = {jul},
url = {https://ceointerviews.ai/interview/2874545/},
note = {Speaker-attributed transcript with timestamps}
}
