Oil and Natural Gas Corporation Limited (ONGC), one of India's leading oil and gas exploration companies, has taken significant steps towards its sustainability goals with an investment in renewable energy. The company has announced a ₹3,300 Crore investment in its wholly owned subsidiary ONGC Green Limited (OGL). This investment was made through a rights-based subscription of equity shares in ONGC Green Ltd. The funds raised by OGL are being channelled into the development of the ONGC NTPC Green Private Limited (ONGPL), a 50:50 joint venture between OGL and NTPC Green Energy Limited (NGEL). The joint venture has received an equivalent amount of investment from NTPC Green Energy Limited to maintain the shareholding structure of ONGPL.

The ONGPL venture is part of ONGC’s strategy to significantly increase its renewable energy investments and move away from its dependence on traditional energy sources. This acquisition further aligns with ONGC’s vision to transition to cleaner energy solutions while ensuring the long-term sustainability of its operations. OGL has set an ambitious target to achieve 10 GW of renewable energy (RE) portfolio by 2030, in line with its plan to reach net-zero emissions by 2038. This investment comes at a time when ONGC is actively diversifying its portfolio into renewable energy, to safeguard against future energy disruptions and reduce its carbon footprint.

In a strategic move to expand its footprint in the renewable energy space, ONGPL, through its acquisition, has completed the purchase of 100% equity stake in Ayana Renewable Power Private Limited (Ayana), a renewable energy company with a portfolio of approximately 4.1 GW of operational and under-construction assets across resource-rich states in India. Ayana's assets are backed by high-credit-rated off-takers, including the Solar Energy Corporation of India (SECI), NTPC, Gujarat Urja Vikas Nigam Limited (GUVNL), and Indian Railways, making the acquisition a strategic step towards scaling up ONGC’s clean energy portfolio.

Ayana Renewable Power, incorporated in March 2017, has a robust track record with substantial revenue growth over the years. In the financial year FY’24, Ayana recorded a turnover of ₹856.4 Crore, showing consistent growth from ₹822.8 Crore in FY’23 and ₹489.2 Crore in FY’22. The company's investment comes from key sovereign-linked institutional investors, including National Investment and Infrastructure Fund (NIIF), British International Investment (BII), and Global Green Energy Fund (GGEF), reflecting the trust in Ayana’s strategic position in the Indian renewable energy market.

The total cost of the acquisition was ₹6,248.50 Crore, with OGL’s share in the acquisition standing at ₹3,124.25 Crore. This significant investment underscores ONGC’s commitment to the renewable energy sector as it strives to decarbonize its operations and meet the growing demand for clean energy solutions. The cash consideration for the acquisition also marks a major step for ONGC as it expands its influence in the renewable sector, particularly in solar, wind, and hybrid energy projects.

The acquisition, completed on 27th March 2025, was a major regulatory milestone for ONGC, which had secured the Competition Commission of India’s approval for the transaction on 11th March 2025. As ONGC continues to strengthen its position in the renewable sector, this acquisition further enhances its efforts to integrate sustainability and energy transition into its core business strategy, positioning the company as a leader in India’s energy transformation.

This acquisition is set to play a pivotal role in ONGC’s green energy push, which is integral to the company’s strategy of reducing its environmental impact and achieving its target of a net-zero carbon footprint by 2038. Through ONGC Green Limited and its strategic acquisitions, ONGC is positioning itself at the forefront of the renewable energy revolution, helping to meet India's ambitious renewable energy goals while delivering substantial shareholder value.

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