NTPC and ONGC Launch Joint Venture for Renewable Energy -NTPC Limited and Oil and Natural Gas Corporation (ONGC), two Maharatna public sector companies, have partnered to establish a 50:50 Joint Venture Company (JVC) through their green energy subsidiaries – NTPC Green Energy Ltd. (NGEL) and ONGC Green Energy Ltd. (OGL). This strategic move supports India’s renewable energy goals, promoting clean energy solutions and sustainability.
Key Details NTPC and ONGC Form Joint Venture for Renewable Energy Growth
The table below provides a summary of the NTPC and ONGC joint venture:
Key Point Details
Why in News NTPC and ONGC have launched a 50:50 JVC to promote renewable energy.
Signing Date February 7, 2024, during India Energy Week 2024
Approvals Approved by DIPAM and NITI Aayog, applied to the Ministry of Corporate Affairs for incorporation
Renewable Energy Focus Solar, wind (onshore/offshore), energy storage (pump/battery), green hydrogen, green ammonia, sustainable aviation fuel (SAF), green methanol
Additional Areas of Focus E-mobility, carbon credits, green credits
Upcoming Projects Offshore wind tenders in Tamil Nadu and Gujarat
NGEL Financials Plans for an IPO to raise Rs 10,000 crore
OGL Financials Authorized capital of Rs 100 crore, subscribed capital of Rs 1 crore
Strategic Goals and Objectives
The JVC will focus on:
Expanding renewable energy projects like solar and wind (both onshore and offshore)
Developing energy storage solutions, including pumped and battery storage
Creating green molecules such as green hydrogen, green ammonia, and green methanol
Advancing sustainable aviation fuel (SAF) and other innovative green technologies
Exploring e-mobility, carbon credits, and green credits to foster environmental responsibility
Industry Context and Support
This collaboration aligns with India’s renewable energy targets and is supported by the Ministry of New and Renewable Energy (MNRE). The government’s commitment to green energy is reinforced by incentives such as the Production-Linked Incentive (PLI) scheme to bolster renewable energy manufacturing.
Financial Plans and Market Expansion
NTPC Green Energy Ltd. (NGEL) plans an initial public offering (IPO) to raise Rs 10,000 crore for further expansion. ONGC Green Energy Ltd. (OGL), formed in February 2024, has an authorized capital of Rs 100 crore and plans to acquire over 1 GW in renewable energy assets.
NTPC and ONGC Launch Joint Venture for Renewable Energy Summary
NTPC and ONGC have formed a 50:50 joint venture to promote renewable energy.
The venture will focus on solar, wind energy, energy storage, and green molecules.
Statutory approvals have been received, and incorporation is underway.
NGEL plans an IPO to raise Rs 10,000 crore.
The JVC aligns with India’s goals for a sustainable future, supported by MNRE incentives.
Also Read Latest Current Affairs 2024
FAQs on NTPC and ONGC Form Joint Venture for Renewable Energy Growth
The joint venture aims to expand renewable energy projects like solar and wind, energy storage, and green hydrogen.
The joint venture agreement was signed on February 7, 2024, during India Energy Week 2024
The focus areas include solar energy, wind (onshore and offshore), energy storage, and green molecules like green hydrogen and green ammonia.
NGEL plans an IPO to raise approximately Rs 10,000 crore for its expansion in the renewable energy sector
The joint venture supports India’s renewable energy goals, aligning with MNRE’s policies and receiving support through incentives like the PLI scheme.
The JVC plans to bid in offshore wind tenders in Tamil Nadu and Gujarat.
Innovations include green hydrogen, green ammonia, sustainable aviation fuel, and carbon credits.
