NGEL, the renewable energy (RE) subsidiary of India's largest electricity producer NTPC Limited, has signed a joint venture agreement with Indian Oil Corporation Limited (IOCL), the country's biggest producer, for setting up renewable energy projects to meet round-the-clock (RTC) power requirement of refineries of IOCL.
"The signing of this joint venture agreement between the two Maharatna behemoths will enable NTPC Limited and Indian Oil to meet India's clean energy targets in their respective core businesses. The JV agreement was signed in the presence of Gurdeep Singh, CMD, NTPC Limited, Shrikant Madhav Vaidya, Chairman, IOCL, among other top officials of the two PSUs," an NTPC spokesperson said.
Through the JV, NTPC plans to help IOCL set up RE projects to the tune of 2.8-3 GW, a senior NTPC official told Moneycontrol.
NTPC Limited, through its wholly owned subsidiary NGEL, has set an ambitious target of building a renewable generation portfolio of 60 GW over the next decade to aggressively pursue its green energy business.
IOCL plans to invest Rs 5 lakh crore into putting in place 200 GW of renewable energy capacity. It plans to build a portfolio of 3 GW RE by 2025.
All this is being done to achieve India's declared goal of having a RE capacity of 500 GW by 2030 and going Net Zero by 2070.
On March 15, IOCL also made a regulatory filing stating that its board has approved the formation of a wholly owned subsidiary (WoS) in India, subject to the approval of NITI Aayog, DIPAM etc to operate in the domain of low carbon, new, clean and green energy businesses. The decision was taken at the board meeting held on March 15. "The proposed WoS will focus and pursue Indian Oil’s low carbon and green energy business to meet the operational requirements of the net zero target and beyond," read the filing.
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