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NTPC and ONGC Drive India’s Green Energy Future with New Joint Venture

NTPC Limited and Oil and Natural Gas Corporation (ONGC), two Maharatna public sector giants, have officially launched a 50:50 Joint Venture Company (JVC) through their green energy subsidiaries – NTPC Green Energy Ltd. (NGEL) and ONGC Green Energy Ltd. (OGL). This collaboration, formalized after receiving approvals from DIPAM and NITI Aayog, marks a significant step in accelerating India’s renewable and new energy goals. The companies have now applied to the Ministry of Corporate Affairs to establish the JVC, following the signing of their joint agreement during India Energy Week in February 2024.

Strategic Focus and Objectives

The JVC will explore diverse renewable energy opportunities including solar, wind (onshore/offshore), and energy storage solutions, as well as innovations in green molecules like green hydrogen, green ammonia, sustainable aviation fuel, and green methanol. Targeting both established and new technologies, the venture will also engage in e-mobility, carbon credits, and green credits, underscoring a broad commitment to sustainable energy innovation. Aiming to make significant contributions to India’s renewable landscape, the JVC plans to participate in upcoming offshore wind tenders in Tamil Nadu and Gujarat and may pursue acquisitions in renewable assets to expand its footprint.

Industry Context and Government Support

The partnership aligns closely with India’s ambitious targets for a low-carbon future, supported by the Ministry of New and Renewable Energy (MNRE). Minister of State Shripad Yesso Naik recently reaffirmed the government’s commitment to advancing renewable energy manufacturing through the Production-Linked Incentive (PLI) scheme and other incentives, offering the renewable sector robust governmental backing.

Financial Moves and Market Expansion

NGEL has filed for an initial public offering (IPO) to raise approximately Rs 10,000 crore, positioning itself for substantial capital inflows to fuel expansion. Meanwhile, OGL, with an authorized capital of Rs 100 crore, aims to expand its clean energy portfolio by acquiring over 1 GW in renewable projects. This partnership highlights the increasing role of India’s energy sector leaders in environmental stewardship, as both NTPC and ONGC leverage their expertise and resources to help reduce India’s carbon footprint, furthering national and global sustainability efforts.

Here’s a table summarizing the key points of the NTPC and ONGC joint venture news:

Key Point Details
Why in News NTPC and ONGC formed a 50:50 joint venture through their subsidiaries NTPC Green Energy Ltd. (NGEL) and ONGC Green Energy Ltd. (OGL) to advance India’s renewable energy goals.
Official Signing Date The joint venture agreement was signed on February 7, 2024 during India Energy Week.
Approvals and Incorporation Received statutory approvals from DIPAM and NITI Aayog. Application submitted to the Ministry of Corporate Affairs for formal incorporation.
Renewable Energy Focus Areas Solar and wind energy (onshore and offshore), energy storage (pump/battery), green hydrogen, green ammonia, sustainable aviation fuel (SAF), and green methanol.
Other Innovations Includes e-mobility, carbon credits, and green credits initiatives.
Strategic Objectives To reduce India’s carbon footprint, foster environmental stewardship, and contribute to national green energy targets.
Upcoming Projects Plans to participate in offshore wind tenders in Tamil Nadu and Gujarat.
NGEL IPO NTPC plans to raise approximately Rs 10,000 crore through an IPO for NTPC Green Energy Ltd.
OGL Financials ONGC Green Energy Ltd. (OGL) was incorporated in February 2024, with an authorized capital of Rs 100 crore and a subscribed capital of Rs 1 crore.
Government Support Ministry of New and Renewable Energy (MNRE) is promoting renewable manufacturing through PLI schemes and incentives.

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