NLC India Shares Gain as Company Signs 810 MW Solar Power Agreement with RVUNL
May 07, 2025 - NLC India shares broke their five-day losing streak on Wednesday, climbing nearly 1 percent following the announcement of a significant power purchase agreement with Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL) for an 810 MW solar power project.
During morning trading, NLC India was trading at Rs 219.35 on the BSE, representing a gain of Rs 1.60 or 0.73 percent. By afternoon, the stock had strengthened further to Rs 222.25, up 2.08 percent, with a trading volume of 1,184,494 shares.
Major Solar Power Agreement
NLC India Renewables Limited (NIRL), the 100% subsidiary and renewable energy arm of NLC India, has signed a power purchase agreement (PPA) for its upcoming 810 MW solar power project with RVUNL. This strategic move marks a significant step in the company's renewable energy portfolio expansion.
According to company statements, the project was secured through a competitive tariff-based bidding process conducted by RVUNL and is being implemented under the Ministry of New and Renewable Energy's Ultra Mega Renewable Energy Power Park (UMREPP) Scheme - Mode 8.
Environmental Impact and Production Capacity
The solar project is expected to deliver impressive environmental and production results:
- Estimated annual green electricity generation of approximately 2 billion units (BU)
- Projected annual CO2 emission reduction of approximately 1.5 million metric tons
- Implementation within the infrastructure of the 2000 MW Pugal Solar Park being developed by RVUNL
This initiative aligns with India's broader goals of transitioning to a low-carbon economy and increasing renewable energy capacity nationwide.
Strategic Partnership for Critical Minerals
In a parallel development enhancing the company's strategic position, NLC India has signed a Memorandum of Understanding (MoU) with IREL (India). This partnership focuses on cooperation and collaboration for the development of mutually agreed critical mineral assets, including Rare Earth Elements (REE).
The scope of this collaboration encompasses mining, excavation, and refining operations, with provisions for acquiring assets or sourcing raw materials both domestically and internationally. This move positions NLC India to potentially capitalize on the growing global demand for critical minerals essential for renewable energy technologies.
Recent Financial Developments
The company has been actively expanding its financial and operational capabilities. In March, the NLC India board granted in-principle approval for external commercial borrowings up to USD 200 million, with an equivalent green shoe option. This financial flexibility strengthens the company's ability to fund its expanding project pipeline.
Additionally, NLC India received a Letter of Award for a 200 MW wind power project from SJVN at a competitive tariff of Rs 3.74 per kWh, further diversifying its renewable energy portfolio beyond solar power.
Stock Performance Overview
NLC India's share price has shown significant volatility over the past year:
- 52-week high: Rs 311.65 (July 16, 2024)
- 52-week low: Rs 185.85 (February 17, 2025)
- Current trading level: 29.62 percent below its 52-week high and 18.03 percent above its 52-week low
The company currently maintains a market capitalization of Rs 30,415.87 crore, reflecting its significant presence in India's energy sector.
As NLC India continues to expand its renewable energy footprint and diversify into critical minerals, investors will be watching closely to see how these strategic initiatives translate into long-term value creation and stock performance.
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