NLC India Rises as Renewables Arm Secures Major Battery Energy Storage Project in Tamil Nadu

NLC India Ltd, a prominent Navratna public sector enterprise under the Government of India, witnessed a notable uptick in its stock price after its renewable energy subsidiary secured a significant win in the battery storage space. The company’s shares gained 1.03% to close at Rs 225.10, following the announcement of a major clean energy milestone.

Landmark Win for NLC India Renewables

NLC India’s wholly owned subsidiary, NLC India Renewables Ltd, has been awarded a letter of award (LoA) from the Tamil Nadu Green Energy Corporation Ltd (TNGECL) for developing standalone Battery Energy Storage System (BESS) projects across the state.

The contract involves setting up three BESS projects with a cumulative capacity of 250 MW / 500 MWh. These will be strategically installed at the 400/230/110 kV substations located in Ottapidaram, Annpankulam, and Kayathar, Tamil Nadu.

First Large-Scale BESS Initiative for NLCIL Group

This project marks NLCIL Group’s first large-scale BESS deployment and represents a major step in its clean energy transition strategy. Battery Energy Storage Systems (BESS) are vital for stabilizing renewable power supply and improving grid resilience, especially in states like Tamil Nadu with growing renewable capacity.

According to NLC India, the projects will be implemented under the Build-Own-Operate (BOO) model and were secured through tariff-based competitive bidding under the State Component of the Viability Gap Funding (VGF) scheme.

Strong Government Backing and Financial Performance

As of 31 March 2025, the Government of India holds a 72.20% stake in NLC India, underscoring the strategic importance of the company in the national energy landscape.

NLC India also reported impressive financial results for Q4 FY25, with its consolidated net profit surging 321.83% to Rs 481.96 crore, compared to the same quarter in the previous fiscal. Revenue from operations grew by 8.34% to Rs 3,836 crore, reflecting robust operational efficiency and project execution capabilities.

A Strategic Shift Towards Green Energy

Traditionally engaged in lignite mining and thermal power generation, NLC India is actively expanding its portfolio in the renewable energy sector. This BESS project win not only reinforces the company's commitment to clean energy but also positions it as a key player in India's energy transition.

With strong financial backing, government support, and a clear focus on sustainability, NLC India is well on its way to becoming a major force in India’s green energy future.

Conclusion

The successful bid by NLC India Renewables for the battery energy storage projects in Tamil Nadu represents a significant milestone in India’s renewable energy journey. As demand for energy storage solutions grows, NLC India’s strategic shift towards innovative clean energy technologies positions it for long-term growth and impact.