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The deal, which is 2nd lone to Adani group’s $3.5-billion acquisition of SB Energy India from Softbank successful 2021, is expected to assistance ONGC and NTPC successful achieving their respective emanation targets. (Photo: X/ONGC_)
In 1 of the biggest-ever acquisitions successful India’s cleanable vigor space, ONGC NTPC Green Energy (ONGPL) connected Wednesday inked the stock acquisition statement for 100 per cent involvement successful renewable vigor subordinate Ayana Renewable Power for an endeavor worth of Rs 19,500 crore, oregon $2.3 billion.
ONGPL is simply a 50:50 associated task betwixt greenish vigor arms of nationalist assemblage majors Oil and Natural Gas Corporation (ONGC) and NTPC, and this is the JV’s archetypal strategical concern since being established successful November past year.
The deal, which is 2nd lone to Adani group’s $3.5-billion acquisition of SB Energy India from Softbank successful 2021, is expected to assistance ONGC and NTPC successful achieving their respective emanation targets, and volition lend towards their ambitions successful the greenish vigor space. ONGC wants to physique a renewable vigor portfolio of 10 gigawatts (GW) by 2030, portion NTPC is looking astatine a renewable vigor capableness people of 60 GW by 2032.
“The woody aligns with the broader imaginativeness of its genitor companies—ONGC and NTPC—to execute net-zero targets by 2038 and 2050, respectively. ONGPL volition present leverage Ayana’s level for further enlargement and growth,” ONGC said successful a release.
The stock acquisition statement betwixt ONGPL and Ayana’s shareholders—National Investment and Infrastructure Fund (NIIF), British International Investment Plc (BII) and its arms, and Eversource Capital—was inked astatine the India Energy Week successful the capital. Established by BII successful 2018, Ayana attracted investments from NIIF and Eversource Capital successful 2019, expanding its portfolio crossed solar, wind, hybrid, and round-the-clock powerfulness projects.
Ayana has astir 4.1 GW of operational and under-construction assets, strategically located crossed resource-rich states. Its portfolio is backed by offtakers similar Solar Energy Corporation of India (SECI), NTPC, Indian Railways, and Gujarat Urja Vikas Nigam (GUVNL). As per accusation disposable connected Ayana’s website, the institution aims to adhd 2 GW of renewable powerfulness capableness successful the state each year
ONGC, JSW Neo Energy, and Sembcorp were successful the fray for Ayana, and yet JSW Neo Energy and ONGC submitted bids for the renewable vigor company. ONGC, which outbid JSW Neo Energy, teamed up with NTPC for the acquisition. The tie-up with NTPC was done arsenic ONGC wanted to mitigate acquisition risks, fixed that the lipid and state elephantine did not person expertise successful the renewable vigor sector, sources indicated.
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“India has committed to achieving Net Zero emissions by 2070 and processing 500 GW of renewable vigor capableness by 2030. NIIF has played a pivotal relation successful scaling Ayana arsenic 1 of India’s premier renewable vigor platforms, supporting the Government of India’s imaginativeness for cleanable vigor transition,” ONGC added.
In September 2024, the lipid large had acquired renewable vigor institution PTC Energy for implicit Rs 900 crore.
Sukalp Sharma is simply a Senior Assistant Editor with The Indian Express and writes connected a big of subjects and sectors, notably vigor and aviation. He has implicit 13 years of acquisition successful journalism with a assemblage of enactment spanning areas similar politics, development, equity markets, corporates, trade, and economical policy. He considers himself an above-average photographer, which goes good with his emotion for travel. ... Read More
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