NLC Share Price in Focus: Board Approved Fund Raise of $200 Mn Via ECBs

On March 11, 2025, NLC India share price will be in focus as the state-owned mining giant said it has received in-principle approval from its board of directors on March 10, 2025, to raise external commercial borrowings (ECB) equivalent to $200 million in Japanese Yen, with an additional green shoe option.

“We write to inform that the Board of Directors of the Company at their meeting held on Monday, 10th March 2025, has inter-alia considered and in-principally approved the borrowing of External Commercial Borrowing within the overall ceiling of Japanese Yen equivalent to USD200 Million with equivalent green shoe option,” NLC India said in a regulatory filing.

What are ECBs?

External Commercial Borrowings (ECBs) are loans utilised by eligible resident entities, raised from recognized non-resident entities. These borrowings must comply with certain criteria, such as minimum maturity period, maximum all-in-cost ceiling, and permitted and non-permitted uses. ECBs are regulated under the Foreign Exchange Management Act (FEMA).

NLC Secured LoA

NLC India Limited (NLCIL) has recently been awarded a Letter of Award (LoA) for a 200 MW Wind Power Project by SJVN Limited, at a tariff of ₹3.74 per kWh. NLCIL emerged successful in the reverse auction held by SJVN Limited on January 17, 2025. The project is expected to generate 526 MU of clean, green energy annually, helping to offset an equivalent amount of greenhouse gas emissions.

This achievement strengthens NLCIL’s growing footprint in India’s renewable energy sector and supports the company’s goal of reaching 10 GW of renewable energy capacity by 2030. It is also notable that NLCIL’s renewable energy journey began with its 51 MW wind project in 2013.

This win significantly expands NLCIL’s wind energy portfolio, bringing its total wind power capacity to over 300 MW, including ongoing projects. The newly secured project will contribute to India’s commitment to increasing non-fossil fuel-based power generation, aligning with the National Green Energy Policy and the government’s target of achieving 500 GW of non-fossil fuel capacity by 2030.

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