Oil and Natural Gas Corporation (ONGC) has emerged as the winner in the bidding process to acquire PTC India Ltd’s wind power unit for a staggering amount of Rs 925 crore. ONGC, the leading oil and gas producer in India, is strategically expanding its renewable energy portfolio to supplement its fossil fuel business.
According to a recent stock exchange filing, ONGC has successfully diversified its operations over the years, venturing into the petrochemicals, power, and hydrocarbon exploration sectors. In its pursuit of renewable energy, the company already boasts a significant capacity of 189 megawatts (MW), encompassing both wind and solar photovoltaic (PV) plants located across different regions.
In a statement, ONGC highlighted that it participated in the acquisition bidding process with the aim of expanding its presence in the renewable energy sector. The company’s bid for a 100% equity stake in PTC Energy Limited (PEL), a wholly-owned subsidiary of PTC India Limited, was approved by the PTC board. However, the final nod is still pending approval from PTC shareholders.
PEL, established on August 1, 2008, operates wind power projects in Madhya Pradesh, Karnataka, and Andhra Pradesh, totaling 288.8 MW. It has secured long-term agreements with state distribution companies for its entire wind power project portfolio. During the 2022-23 fiscal year, PEL generated a revenue of Rs 296.77 crore, resulting in a profit of Rs 13.88 crore.
PTC India, a prominent provider of power trading and financial services solutions, stated in a separate filing that the dates for the extraordinary general meeting and the signing of the shareholder’s agreement would be communicated once they are finalized.
ONGC is steadfast in its commitment to achieving zero carbon emissions by 2038 and has already pledged an investment of approximately Rs 2 lakh crore towards this goal. The company plans to invest Rs 1 lakh crore by 2030 to establish 10 gigawatts (GW) of renewable energy capacity, including offshore wind energy projects and a green ammonia plant. Furthermore, ONGC intends to set up 25 compressed biogas plants that convert agricultural residues into gas suitable for use in vehicles (CNG) and electricity and fertilizer production.
ONGC is also actively exploring opportunities to establish a green ammonia plant with an annual capacity of 1 million tonnes. The company aims to achieve Scope 1 and 2 net zero carbon emissions by progressively implementing these projects.
While expanding into the renewable energy space, ONGC remains focused on its core activities of oil and gas exploration and production. In the 2022-23 fiscal year, ONGC produced 19.584 million tonnes (MT) of oil, with estimates projecting a rise to 20.232 MT in the current fiscal year and 21.265 MT in 2024-25. Additionally, natural gas output is expected to increase from 20.636 billion cubic meters (bcm) in 2022-23 to 20.882 bcm in 2023-24, 22.171 bcm in the following year, and 23.708 bcm in 2025-26.
ONGC’s ambitious plans to expand its renewable energy capacity and reduce carbon emissions demonstrate its commitment to a sustainable future. With its successful bid for PTC India’s wind power unit, ONGC is poised to strengthen its position in the renewable energy market and contribute to the country’s clean energy transition.
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