Competition Commission clears ONGC-NTPC Green's proposal to acquire Ayana for Rs 19,500 crore

ONGC-NTPC Green Pvt Ltd (ONGPL), a 50:50 joint venture between ONGC Green (OGL) and NTPC Green Energy Ltd (NGEL).

The Competition Commission of India on Tuesday cleared ONGC-NTPC Green’s proposal to acquire renewable energy firm Ayana for Rs 19,500 crore (USD 2.3 billion).

ONGC-NTPC Green Pvt Ltd (ONGPL), a 50:50 joint venture between ONGC Green (OGL) and NTPC Green Energy Ltd (NGEL). ”The proposed combination involves the acquisition of 100 per cent equity share capital of the target (Ayana Renewable Power) by the acquirer (ONGC NTPC Green), the regulator said in a release.

The acquirer is joint venture between ONGC Green Limited and NTPC Green Energy Limited, and is presently, not engaged in any business activities. ONGC Green Limited and NTPC Green Energy Limited are wholly owned subsidiaries of Oil and Natural Gas Corporation Limited and NTPC Limited, respectively.

The target (including its affiliates) is engaged in the power sector and more specifically, in the business of: (a) generation of power through renewable sources; and (b) transmission of power, in India.

ONGC Green and NTPC Green Energy are wholly-owned subsidiaries of Oil and Natural Gas Corporation Ltd (ONGC) and NTPC Ltd, respectively. ”CCI approves the proposed combination involving the acquisition of Ayana Renewable Power Pvt Ltd by ONGC NTPC Green Pvt Ltd,” the Competition Commission of India (CCI) said in a post on X.

Last month, ONGPL said it signed a share purchase agreement to acquire a 100 per cent equity stake in Ayana Renewable Power Pvt Ltd (Ayana). The agreement was signed with Ayana’s current shareholders National Investment and Infrastructure Fund (NIIF) (51 per cent), British International Investment Plc (BII) and its subsidiaries (32 per cent), and Eversource Capital (17 per cent).. The transaction is valued at USD 2.3 billion, it added.This is the second biggest deal in the renewable energy space. Adani Green Energy (AGEL) in October 2021 acquired SB Energy India from SoftBank Group Corp (SBG) and Bharti Group in an all-cash deal worth USD 3.5 billion. Ayana, a leading renewable energy platform, has about 4.1 GW of operational and under-construction assets, strategically located across resource-rich states.

It has around 3 GW under development, comprising solar, wind, hybrid & round the clock (RTC) renewable assets with firm power purchase agreements. Of this, the group expects to commission a 300-MW solar power asset and 140-MW wind power asset in FY25 and the balance through FY26 and FY27. OGL, a wholly-owned subsidiary of ONGC, focuses on solar, wind, and energy storage solutions, actively pursuing both greenfield and brownfield acquisitions to accelerate India’s renewable transition.

NGEL, a subsidiary of NTPC Ltd, leads NTPC’s renewable energy expansion, targeting 60 GW RE capacity by 2032, and NIIF is India’s sovereign-linked asset manager, with USD 4.4 billion in equity capital commitments. BII is the UK’s development finance institution, supporting sustainable economic growth in emerging markets, while Eversource Capital manages one of the largest climate funds in emerging markets, focusing on energy transition, industrial decarbonisation, and urban sustainability.