NLC India Ltd (NLCIL) is pursuing a dual-track strategy of expanding conventional energy capacity while rapidly scaling up renewable power and energy storage, as the Navratna company seeks to strengthen India’s energy security and support its long-term decarbonisation goals.
NLCIL, under the Ministry of Coal, currently has 8,405 MW of power generation capacity and 59.10 MTPA of mining capacity. The company is transitioning from a traditional mining enterprise into an integrated energy business spanning thermal power, renewables, storage, green hydrogen and strategic minerals.
Mining capacity to cross 104 MTPA by 2030
Coal and lignite continue to provide baseload support to India’s electricity system, and NLCIL plans to increase its mining capacity substantially.
The company is targeting an increase in total mining capacity from 59.1 MTPA currently to 104.35 MTPA by 2030, with a longer-term target of 115.85 MTPA by 2047. The expansion is aimed at supporting domestic fuel availability and reducing dependence on imports.
NLCIL is also moving towards higher-efficiency thermal generation. Its planned portfolio includes 1,980 MW of supercritical capacity at Ghatampur, along with 2,400 MW of ultra-supercritical capacity at Talabira and 4,000 MW at Machhakatta.
These technologies are designed to generate more electricity from each unit of coal consumed, thereby reducing specific fuel consumption and emissions compared with older thermal technologies.
Rail connectivity to reduce logistics emissions
The company is also investing in First Mile Connectivity (FMC) infrastructure to improve the movement of mined material.
NLCIL plans to commission 63.5 MTPA of FMC rail corridor capacity across Pachwara South, North Dhadu (West), Talabira, Machhakatta and New Patrapara (South).
The shift towards rail-based movement is expected to reduce dependence on road transportation and associated oil consumption while improving the efficiency of the mining-to-power supply chain.
Renewable capacity to cross 10 GW
Alongside its conventional energy expansion, NLCIL is targeting a sharp increase in renewable generation through NLCIL Renewables Limited (NIRL).
The company plans to increase its operational renewable portfolio from around 1.8 GW to more than 10 GW by 2030, with a longer-term target of 32.7 GW by 2047.
The expansion would enable renewables to account for around 50% of NLCIL’s generation mix, according to the company.
Battery storage and pumped hydro
Energy storage is emerging as a key component of NLCIL’s renewable strategy. The company has projects under development comprising 250 MW/500 MWh in Tamil Nadu, 300 MW/1,800 MWh with SECI in Rajasthan, 275 MW/550 MWh with GUVNL in Gujarat and 50 MW/200 MWh with WBSEDL.
NLCIL is also targeting large-scale pumped storage projects in Tamil Nadu and Odisha to help balance the intermittency associated with renewable generation.
Green hydrogen and strategic minerals
The company’s diversification extends into emerging low-carbon technologies and critical minerals.
At Neyveli, NLCIL is constructing a 4 MW solar-powered PEM electrolyser-based green hydrogen pilot plant. It is also working with IIT Madras on advanced carbon capture systems.
In strategic minerals, the company has secured domestic composite exploration licences for phosphorite and limestone in Chhattisgarh, and vanadium and titanium in Telangana. It is also pursuing international opportunities in critical minerals through KABIL.
The broader strategy positions NLCIL to maintain its role in India’s baseload energy supply while building new revenue streams around renewables, energy storage, green hydrogen and critical minerals.