NLC India Ltd has allocated ₹23,600 crore in capital expenditure for FY26-27, about 90% of the investment is planned to go for energy storage projects and other sector initiatives. 

The company's latest filing with the stock exchange indicates that ₹4,620 crore of planned investment will be used to fund battery energy storage system (BESS) projects, reflecting NLC's focus on creating sustainable energy infrastructure and grid stabilisation technologies. BESS installations are integral to making renewable energy sources more manageable for the grid, as they are variable in nature such as solar and wind power.

The capital expenditure for NLC is also spread across its power generation businesses, thermal, renewable energy and allied sectors, although it also includes investments in the mining and infrastructure businesses. The budget for FY27 aims to ensure not only the traditional needs of the energy industry, but also continue to meet the nation's future energy security and climate goals for clean energy solutions, officials said.

With the allocation of ₹4,620 crore for BESS projects, NLC India emerges as one of the major State-owned energy companies spending on storage technologies. Through these systems, they hope to improve the reliability of the grid, minimise curtailment of renewables and enable peak-load management, which is essential for India's renewable energy expansion

This announcement comes at a time when energy storage is becoming a critical part of the nationwide clean energy transition. As solar and wind installations increase, stored energy (e.g., BESS) aids in mitigating supply fluctuations and enhances dispatch flexibility, thereby facilitating the integration of renewables in a cost-effective manner.

The industry responded positively to NLC's capex roadmap, noting that the company's emphasis on energy storage is aligned with the world's trend and the India’s policy thrust on decarbonisation, robust energy resilience and sustainable infrastructure investment.

The company highlighted its future plans to modernise its portfolio through innovative technologies while creating long-term value for stakeholders, reflecting NLC's commitment to technology and value generation. The expected outcome of the 1,000 crores of capex in FY27 will be jobs, increased energy supply chain resilience, and potential for NLC India to evolve towards a diversified energy provider for a low carbon future.