NLC India Seals ₹25,000 Crore Green Energy Pact with Gujarat; Board Clears NIRL IPO

NLC India Limited (NLCIL) has signed a major Memorandum of Understanding (MoU) with the Government of Gujarat for the development of large-scale renewable energy projects, with an aggregate investment potential of up to ₹25,000 crore, as the PSU accelerates its transition from lignite-led operations to clean power.

The MoU was signed on January 12, 2026, during the Vibrant Gujarat Regional Conference in Rajkot. It was executed by Devendra Pratap Singh, Executive Director (Projects & Business Development) and CEO of NLC India Renewables Limited (NIRL), and Bhakthi Shamal, Joint Secretary in Gujarat’s Energy & Petrochemicals Department, in the presence of senior officials including Union Minister Piyush Goyal, as per the company’s statement.

NLCIL said the MoU is non-binding and envisages solar, wind, hybrid and battery storage projects across Gujarat, with the state supporting facilitation of approvals and clearances as per applicable policies.

Value unlock: NLC board gives in-principle nod for NIRL IPO

In a parallel move, NLC India’s board has granted in-principle approval for the listing of its green energy arm NIRL through an IPO.

Under the plan, the company may dilute up to 25% equity stake in one or more tranches, subject to required approvals. The company has indicated the proposal will be routed through appropriate government channels, consistent with PSU disinvestment processes.

The listing plan aligns with the broader government approach of monetising and unlocking value in operational assets, while allowing capital-heavy renewable portfolios to scale faster.

Gujarat expansion: solar, wind, hybrid and storage

NLC India said the ₹25,000 crore pipeline in Gujarat will include:

• Solar PV
• Wind energy
• Hybrid renewable projects
• Battery Energy Storage Systems (BESS)

To support near-term project requirements, the board also approved an equity infusion of ₹66.60 crore into NIRL.

Dividend: ₹3.60 per share interim payout

Alongside the renewable push, the Navratna PSU has declared an interim dividend of 36%, translating to ₹3.60 per equity share (face value ₹10).

The record date is January 16, 2026, as per company and exchange disclosures.

Stock reaction

NLC India shares ended higher on the day after the green-energy MoU and IPO-related board updates, with investors tracking the listing pipeline for NIRL and the company’s 2030 renewable ambitions.

Summary

NLC India has signed a non-binding MoU with the Gujarat government with an investment potential of up to ₹25,000 crore to build large-scale renewable energy projects spanning solar, wind, hybrid and battery storage. In a key value-unlock move, the company’s board has also granted in-principle approval for an IPO of its renewable subsidiary NIRL, with up to 25% stake dilution in one or more tranches. NLC India also declared an interim dividend of ₹3.60 per share, with January 16, 2026 as the record date.

Frequently asked questions (FAQs)

Q1: What did NLC India sign with the Gujarat government?

NLC India signed a non-binding MoU with the Government of Gujarat to develop large-scale renewable energy projects with an investment potential of up to ₹25,000 crore.

Q2: What projects are included in the plan?

The planned portfolio includes solar, wind, hybrid renewable projects and battery energy storage systems (BESS).

Q3: What is the update on the NIRL IPO?

NLC India’s board has given in-principle approval for listing NIRL by diluting up to 25% stake in one or more tranches, subject to approvals.

Q4: What interim dividend has NLC India declared?

The company declared an interim dividend of 36%, equal to ₹3.60 per share.

Q5: What is the dividend record date?

The record date is January 16, 2026.