Futureproofing Indian Public Sector Enterprises

This report by the Climate Policy Initiative (CPI) proposes a strategic framework to help Indian Public Sector Enterprises (PSEs) in the fossil fuel-dominated energy sector diversify their business models to mitigate risks associated with India's 2070 net-zero target. The document details a two-step evaluation process for identifying and analyzing diversification segments and applies this logic to three major entities: Coal India Limited (CIL), Indian Railways (IR), and NTPC Limited.

• The Climate Policy Initiative (CPI) has developed a two-step framework to help Indian PSEs de-risk their finances and business operations as the country moves toward decarbonization. Step 1 uses qualitative SWOT analysis and quantitative Porter’s diamond analysis to identify and prioritize suitable business segments. Step 2 employs multi-criteria decision analysis (MCDA) to assess the comparative suitability of specific businesses and a growth share matrix to synthesize these into an investment portfolio based on market share and growth potential.
• Coal India Limited (CIL), which produces 83% of India's domestic coal and supplies 80% of its dispatch to the power sector, is diversifying into renewables to broaden revenue streams. CIL has created two subsidiaries: CIL Solar PV Limited, focusing on the solar value chain (Ingot-wafer-Cell Module), and CIL Navikarniya Urja Limited for renewable energy initiatives. The company targets 3 GW of renewable energy by 2024 and is participating in the PLI scheme for 4GW Wafer-Cell-Module Solar PV Manufacturing.
• Indian Railways (IR) aims for net-zero carbon emissions by 2030 and plans to leverage its landbank and network infrastructure for diversification. IR has identified the potential to source 200 MW of wind power and approximately 20 GW of solar power by 2030. Additionally, the report suggests IR can expand into high-value passenger services to cross-subsidize lower-cost services and capture growth in freight and container services.
• NTPC Limited, which provides over 24% of India's electricity supply and holds approximately 17% of installed capacity, is pursuing a multi-pronged diversification strategy. This includes a target of 60 GW of installed renewable energy capacity by 2032, collaboration with ONGC for offshore wind, and a pilot project for carbon capture and storage (CCS) to produce methanol. NTPC is also expanding into electric mobility, deploying 140 electric buses and planning 267 charging stations in eight cities under the government's FAME-II scheme.

APA

Tiwari, S. (2023). Futureproofing Indian Public Sector Enterprises. Climate Policy Initiative. https://www.climatepolicyinitiative.org/futureproofing-indian-public-sector-enterprises-part-2/

Chicago

Tiwari, Saumya. Futureproofing Indian Public Sector Enterprises. Climate Policy Initiative, 2023. https://www.climatepolicyinitiative.org/futureproofing-indian-public-sector-enterprises-part-2/.

Wikipedia

{{cite report |last1=Tiwari |first1=Saumya |title=Futureproofing Indian Public Sector Enterprises |publisher=Climate Policy Initiative |date=21 June 2023 |url=https://www.climatepolicyinitiative.org/futureproofing-indian-public-sector-enterprises-part-2/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{tiwari2023futureproofing, author = {Tiwari, Saumya}, title = {{Futureproofing Indian Public Sector Enterprises}}, institution = {Climate Policy Initiative}, year = {2023}, month = jun, url = {https://www.climatepolicyinitiative.org/futureproofing-indian-public-sector-enterprises-part-2/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }