India's largest government-owned explorer Oil and Natural Gas Corporation has decided to increase its investment in clean energy 100-fold by the end of the decade to reduce its carbon footprint, as reported by Bloomberg.
The company said it wants to invest Rs 1 trillion to build its renewables portfolio of 10GW by 2030, increasing from Rs 10 billion in FY25.
“We are getting into green energy because we do believe India requires lot more energy in addition to fossil fuels,” Vivek Chandrakant Tongaonkar, director of finance told Bloomberg.
Along with 193MW of solar and wind energy, ONGC aims to invest in 25 compressed biogas plants, hydro projects and 1 million tonnes of green ammonia capacity, including 1,80,000 tonnes of green hydrogen. Tongaonkar said that the company has placed a tender for 1GW capacity of solar and wind power, while also looking out from acquiring new energy plants to scale up capacity.
ONGC's cash flow from its oil and gas business as well as debt raised for the projects will fund the company's new energy business.
In the ongoing India Energy Week in Yoshobhoomi, New Delhi, the company also announced that its joint venture firm with NTPC's green energy arm, ONGC NTPC Green Energy (ONGPL) signed share purchase agreement for 100% stake in renewable energy company Ayana Renewable Power. The stake is bought for an enterprise value of Rs 19,500 crore.
In an X post, company said, "This acquisition is a pivotal step towards India’s energy transition, aligning with ONGC’s #NetZero by 2038 & NTPC’s 60 GW RE target by 2032. With ONGC & NTPC’s combined technical expertise & financial strength, ONGPL is set to spearhead India’s clean energy revolution."
ONGPL, a 50:50 joint venture between green energy arms of both the companies, made the first strategic investment since being established in November 2024. The deal is expected to aid both the companies in achieving their respective emission targets and contribute towards their ambitions in the green energy space.
The acquisition has come at a time when large power corporations are betting big on green energy and making ambitious pledges for their capacity expansion.
