The Ministry of Petroleum and Natural Gas has granted approval for the formation of a subsidiary company by the Oil and Natural Gas Corporation Limited (ONGC), dedicated to the green energy and gas sector. This significant move was announced during ONGC’s board meeting on January 23, 2024, reflecting the company’s commitment to diversify its portfolio and contribute to sustainable energy solutions.
Wholly-Owned Subsidiary: ONGC Green Limited
- The newly approved subsidiary, tentatively named “ONGC Green Limited,” is slated to be a wholly-owned entity of ONGC. However, the proposed name is subject to the approval of the Ministry of Corporate Affairs, Government of India.
- The subsidiary is envisioned to engage in various aspects of the energy sector’s value chain, focusing on green hydrogen, hydrogen blending, renewable energy (solar, wind, and hybrid), biofuels, biogas, and liquefied natural gas (LNG).
Joint Venture with NTPC Green Energy Limited
- In addition to the formation of ONGC Green Limited, the board also granted in-principle approval for the establishment of a Joint Venture Company (JVC) with NTPC Green Energy Limited.
- This strategic partnership aims to delve into the burgeoning Offshore Wind Energy sector and other Renewable Energy opportunities.
- The collaboration with NTPC Green Energy Limited aligns with ONGC’s broader vision to diversify its energy portfolio and contribute to India’s ambitious renewable energy goals.
- This move is significant in the context of the country’s commitment to the “Panchamrit” pledge made at COP26 in 2021.
India’s Renewable Energy Commitments
- India, committed to environmental sustainability, announced its “Panchamrit” pledge at COP26. The pledge includes ambitious targets such as reaching 500 GW of non-fossil electricity capacity.
- Generating 50% of energy from renewables, reducing emissions by 1 billion tonnes by 2030, decreasing emissions intensity of GDP by 45%, and achieving net-zero emissions by 2070.
- As the world’s third-largest oil importer and consumer, India’s dependency on global crude oil sources underscores the need for robust initiatives in the green energy and gas sector.
- The approval for ONGC Green Limited and the collaboration with NTPC Green Energy Limited signal a significant step towards aligning with India’s sustainable energy goals and global environmental commitments.
Important Questions Related to Exams
1. What type of energy does the Joint Venture Company with NTPC Green Energy focus on?
2. What is India’s commitment regarding emissions by 2030 as part of COP26?
3. Which ministry granted approval for the formation of ONGC’s subsidiary?
Kindly share your responses in the comment section!!