In a significant development in India's renewable energy sector, NLC India Limited, a Navratna Public Sector Enterprise under the Ministry of Coal, Government of India, has announced the receipt of a Letter of Award (LoA) from NTPC Limited. Dated 27th June 2025, this award pertains to the establishment and supply of a 450 MW Inter State Transmission System (ISTS) connected Wind-Solar Hybrid Power Project, affirming NLC India’s growing role in the country’s green energy mission.

According to the official disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, NLC India conveyed this major achievement to both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). The awarded project will supply hybrid power generated from wind and solar sources directly to NTPC Limited, India’s largest power utility.

The awarded capacity will be strategically developed in two renewable-rich zones:

• 300 MW at Bikaner in Rajasthan

• 150 MW at Bhuj in Gujarat

These two locations have been identified for their high renewable energy potential, making them ideal for large-scale hybrid projects that combine wind and solar technologies. This diversification of sources not only improves energy reliability but also optimises land and transmission usage.

Contract Scope and Terms

The awarded wind-solar hybrid project is a domestic power generation and supply contract under India’s expanding renewable energy infrastructure. The Scheduled Commencement of Supply Date (SCSD) for full-capacity delivery is targeted within 24 months from the effective date of the Power Purchase Agreement (PPA) signed with NTPC. This means the project is expected to go live and begin power supply before the end of June 2027, ensuring timely contribution to India's renewable targets.

This 450 MW hybrid project will not only generate electricity but will also be connected to the ISTS, which facilitates the seamless transmission of renewable power across states. This system reduces transmission losses and enables efficient power evacuation to NTPC’s grid systems, strengthening India's unified power grid.

The power from the project will be supplied to NTPC under a 25-year Power Purchase Agreement (PPA). Such long-term agreements reflect strong investor confidence, financial viability, and long-term sustainability. With the rising demand for clean energy from state utilities and private players alike, such arrangements ensure stability in tariff and predictable returns for both producer and consumer.

Strategic Importance of the Project

NLC India's success in bagging this NTPC order reinforces its position in India's energy transition journey. The wind-solar hybrid configuration is a forward-looking solution that leverages complementary power generation profiles. Solar energy peaks during the day, while wind energy often reaches its potential during late evenings and nights. Together, they enable higher capacity utilisation, better grid stability, and improved energy security.

This project aligns perfectly with India's ambitious National Renewable Energy Mission, which targets 500 GW of non-fossil fuel energy capacity by 2030. Hybrid systems like the one being implemented by NLC India help reduce curtailment risks, maximise land use, and address the intermittency issues associated with standalone solar or wind farms.

With the LoA awarded by NTPC Limited, a Maharatna PSU and India’s largest integrated energy company, NLC India joins an elite group of developers contributing to NTPC’s Renewable Energy goals, which aim to install 60 GW of renewable capacity by 2032.

No Related Party Involvement or Conflicts

It is noteworthy that no promoter or promoter group of NLC India has any interest in NTPC Limited, the awarding authority. This ensures that the project does not fall under related party transactions, and the award has been made at arm’s length, in compliance with corporate governance norms.

Broader Implications and Future Outlook

As India progresses on its path to energy independence and sustainability, such projects are pivotal. They help reduce dependence on fossil fuels, lower carbon emissions, and create green jobs in regions like Rajasthan and Gujarat. These states are already known for their strong renewable infrastructure and will benefit further from infrastructure investments, economic activity, and capacity building.

NLC India, known for its legacy in lignite-based power generation, has over the past few years pivoted strategically towards clean energy. With this NTPC LoA, it is not only reinforcing its renewable portfolio but also aligning with India’s climate commitments under COP26, including net-zero emissions by 2070.

This LoA boosts investor confidence in NLC India, whose consistent growth in the renewable energy segment signals a robust project execution track record, competent engineering capabilities, and strong financial management. As more such hybrid projects are tendered by central agencies, NLC India is well-placed to emerge as a leading integrated green energy developer.

Moreover, by winning such competitive bids, the company is showing pricing efficiency and technical capability, key requirements in government tenders for hybrid power supply projects. With this strategic move, NLC India is expected to attract further collaborations, private investment, and potential partnerships in the renewable value chain.

Conclusion

The award of this 450 MW wind-solar hybrid power project by NTPC to NLC India is a landmark milestone that further consolidates India’s shift towards clean and sustainable energy. With efficient project planning, timely execution, and long-term vision, NLC India continues to be a key player in powering India’s renewable energy transformation.

This development adds to the growing list of green energy contracts being awarded by top PSUs, and underlines how public sector companies are leading the transition. As the country marches towards a low-carbon future, announcements like this one provide both strategic direction and on-ground execution of the ambitious energy targets.

NLC India’s continued efforts in securing such renewable energy projects, backed by robust PPAs and strategic locations, promise long-term value creation for stakeholders while actively contributing to the nation's clean energy mission.

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