ONGC acquires PTC wind power unit for Rs 925 crore

Oil and Natural Gas Corporation (ONGC) has successfully secured the acquisition of PTC India Ltd's wind power division for an amount of 925 crore Indian rupees. This strategic move is part of ONGC's ongoing efforts to expand its renewable energy portfolio in addition to its traditional fossil fuel operations. ONGC, the leading state-owned oil and gas company in India, has diversified its interests over the years, entering the petrochemicals and power generation sectors while maintaining its core focus on hydrocarbon exploration. The company has taken significant steps to enhance its presence in renewable energy, boasting a total capacity of 189 megawatts, including wind and solar photovoltaic facilities situated in various locations.

With a strategic intent to broaden its presence in the renewable energy sector, the company engaged in the competitive bidding process to acquire a full 100% ownership stake in PTC Energy Limited (PEL), a wholly-owned subsidiary of PTC India Limited (PTC). The recent decision by the PTC board in the past week sanctioned ONGC's proposal to obtain a complete 100% equity share in PEL, valuing it at Rs 925 crore. It is important to note that the final approval depends on the consent of PTC's shareholders. Established on August 1, 2008, PEL possesses a renewable energy portfolio totaling 288.8 MW, which encompasses 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.

The company has inked long-term contracts with state distribution companies to encompass their entire 288.8 MW wind power project portfolio. PEL reported a profit of Rs 13.88 crore with a revenue of Rs 296.77 crore in the 2022–23 fiscal year, spanning from April 2022 to March 2023. PTC India, a prominent player in the power trading and financial services sectors, mentioned in a separate filing that the specific dates for the extraordinary general meeting and the signing of the shareholder's agreement will be communicated once these actions are executed.

ONGC had previously disclosed a substantial investment plan of roughly Rs 2 lakh crore with the aim of achieving zero carbon emissions by 2038. As part of this initiative, the company is committed to investing Rs 1 lakh crore by 2030 to establish 10 gigawatts of renewable energy capacity, build a green ammonia plant, and launch offshore wind energy projects. The remainder of the investment will be channeled toward achieving net zero carbon emissions in Scope 1 and 2.