ONGC wins bid to acquire PTC’s wind power unit for Rs 925 crore
ONGC’s successful bid to acquire PTC India Ltd’s wind power unit for Rs 925 crore marks a significant development in the state-owned firm’s efforts to diversify its energy portfolio and expand its presence in the renewable energy sector. The move reflects ONGC’s strategic focus on balancing its traditional fossil fuel operations with investments in sustainable and environmentally friendly energy sources.
Through its expansion into the petrochemicals and power sectors, ONGC has demonstrated a commitment to exploring new avenues for growth and diversification, thereby strengthening its position as a leading player in India’s energy landscape. The acquisition of PTC India Ltd’s wind power unit serves as a testament to ONGC’s dedication to fostering a more sustainable and diversified energy portfolio, aligned with the global shift toward cleaner and more sustainable energy sources.
As ONGC continues to advance its renewable energy initiatives, the company has already established a significant capacity of 189 megawatts (MW) through its existing wind and solar photovoltaic (PV) plants located across various regions. This expansion into renewable energy generation underscores ONGC’s proactive approach to adopting innovative and sustainable solutions, contributing to the country’s broader renewable energy targets and its commitment to mitigating the environmental impact of traditional energy production.
ONGC’s foray into the renewable energy sector not only demonstrates its adaptability to evolving market dynamics but also highlights its dedication to fostering a more sustainable and resilient energy landscape, reflective of the company’s long-term vision for growth and sustainability.
ONGC’s strategic vision to strengthen its foothold in the renewable energy sector has led the company to actively participate in the acquisition process of PTC Energy Limited (PEL), a wholly-owned subsidiary of PTC India Limited (PTC). With a clear commitment to diversifying its business portfolio and expanding its renewable energy assets, ONGC’s proactive engagement in the bidding process for PEL underscores its dedication to embracing sustainable energy solutions and fostering a more environmentally conscious approach to business operations.
The recent approval by the PTC board of ONGC’s bid for the acquisition of a 100 per cent equity stake in PEL, at an equity value of Rs 925 crore, represents a significant step forward in ONGC’s renewable energy expansion strategy. However, the finalization of the acquisition is contingent upon the approval of PTC shareholders, indicating a commitment to transparency and corporate governance practices.
PEL, established in 2008, boasts a substantial renewable energy portfolio, with a total capacity of 288.8 MW. This portfolio comprises wind power projects in various states, including 50 MW wind power projects in Madhya Pradesh, 50 MW wind power projects in Karnataka, and 188.8 MW wind power projects in Andhra Pradesh. ONGC’s prospective acquisition of PEL is poised to further strengthen its position in the renewable energy sector and contribute to the company’s broader mission of sustainable and responsible energy development.
By integrating PEL’s existing renewable energy assets into its portfolio, ONGC is poised to enhance its capacity and capabilities in the renewable energy space, further solidifying its commitment to reducing its carbon footprint and promoting a more sustainable energy future.
ONGC’s entry into long-term agreements with state distribution companies, encompassing the entire 288.8 MW wind power project portfolio, reflects the company’s commitment to establishing a robust and sustainable renewable energy presence. By solidifying these agreements, ONGC is not only reinforcing its position as a key player in the renewable energy sector but also contributing to the expansion of clean and reliable energy sources across the country.
The notable profit of Rs 13.88 crore, coupled with a revenue of Rs 296.77 crore, achieved by PEL during the 2022-23 fiscal year, serves as a testament to the company’s sound financial performance and operational excellence within the renewable energy domain. These figures underscore PEL’s strong market position and its potential to further strengthen ONGC’s renewable energy portfolio, aligning with the company’s broader commitment to sustainable and responsible business practices.
As ONGC moves forward with its plans for the acquisition of PEL, PTC India, a key player in the power trading and financial services sector, has indicated that the details regarding the extraordinary general meeting and the signing of the shareholder’s agreement will be communicated at a later date, highlighting a commitment to transparency and effective stakeholder communication.
Furthermore, ONGC’s ambitious investment plans of approximately Rs 2 lakh crore, aimed at achieving zero carbon emissions by 2038, underscore the company’s proactive approach to addressing climate change and transitioning to a more sustainable energy future. By pledging a significant investment of Rs 1 lakh crore by 2030 for the establishment of 10 gigawatts of renewable energy capacity, a green ammonia plant, and offshore wind energy projects, ONGC is setting a precedent for the energy sector, highlighting its commitment to environmental stewardship and its contribution to the nation’s renewable energy goals. The remaining investments are aimed at achieving Scope 1 and 2 net-zero carbon emissions, underscoring ONGC’s dedication to environmental sustainability and its role in driving the transition to a low-carbon economy.
ONGC’s multifaceted approach to energy generation, combining its traditional oil and gas operations with a robust renewable energy expansion strategy, underscores the company’s commitment to striking a balance between conventional and sustainable energy sources. As the company continues to expand its renewable energy portfolio, its current capacity of 189 MW for electricity generation from renewable sources is expected to witness substantial growth, with a target of reaching 10 GW by 2030. ONGC’s significant efforts in this regard, including the signing of an MoU for 5 GW in Rajasthan and the exploration of projects of similar scale, highlight its commitment to scaling up its renewable energy footprint and contributing to India’s ambitious renewable energy targets.
In addition to its renewable energy initiatives, ONGC’s plans to establish 25 compressed biogas plants demonstrate its commitment to promoting sustainable energy solutions, particularly through the conversion of agricultural residues into gas for use in various sectors such as automotive (CNG), electricity generation, and fertilizer production. Furthermore, the company’s pursuit of opportunities to set up a 1 million tonnes per annum green ammonia plant further exemplifies its commitment to exploring innovative and environmentally friendly energy alternatives.
ONGC’s projection of oil production reaching 19.584 million tonnes in 2022-23, with a further increase to 20.232 million tonnes in the current fiscal year (2023-24) and 21.265 million tonnes in 2024-25, underscores its continued focus on maintaining and enhancing its hydrocarbon production capacity. Similarly, the projected growth in natural gas output from 20.636 billion cubic meters in 2022-23 to 20.882 billion cubic meters in 2023-24, 22.171 billion cubic meters in the following year, and 23.708 billion cubic meters in 2025-26 highlights ONGC’s dedication to meeting the growing energy demands of the nation while simultaneously advancing its renewable energy goals. Through these concerted efforts, ONGC is poised to contribute significantly to India’s energy security and sustainable development objectives, while also addressing the global imperative of transitioning to a more sustainable and low-carbon energy future.
