NTPC, Indian Oil enter into deal to set up green power join venture

Indian Oil Corporation

State-owned power giant NTPC and Indian Oil have inked a pact to form a joint venture firm for meeting the electricity requirements of upcoming projects of the oil major.

NTPC and Indian Oil signed an agreement on July 18, 2022 in New Delhi for the formation of a joint venture company for meeting the power requirements of upcoming projects of Indian Oil refineries, a company statement said.

Unified in the purpose of increasing the usage and capacity of renewable energy sources in the country, the state-run corporations teamed up for setting up renewable energy-based power plants for Indian Oil refineries, it stated. Gurdeep Singh, CMD, NTPC, said in the statement, "The joint venture between the two energy majors for a common purpose is a classic example of teamwork and collaboration for others to follow." Gurdeep Singh, CMD, NTPC, said in the statement.

Shrikant Madhav Vaidya, chairman, Indian Oil, said, "It is indeed a powerful statement as two fossil fuel giants of the country — Indian Oil & NTPC — join hands for changing their path towards green energy." He further added that "the two Maharatna PSUs can now leverage their capabilities to push forward the green growth agenda"

Going forward NTPC Green Energy Limited (NGEL), a wholly-owned subsidiary of NTPC, will form the JV company for supply of RE-RTC power to Indian Oil. NGEL will be an umbrella company for consolidating NTPC’s total renewable energy businesses.

Indian Oil said it plans to meet the additional power requirement of its refineries using round-the-clock renewable energy to the tune of 650 MW by December 2024 through this JV.