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.