ONGC to Invest Rs 3,500 Cr to Expand Green Energy Capacity

India's energy sector is witnessing a strong shift as Oil and Natural Gas Corporation (ONGC) heightens its commitment to renewable energy. ONGC intends to expand its green energy capacity through funding up to Rs 3,500 Cr in this financial year for its ambitious goal to reach 10 GW of renewable power by 2030, said Vivek Chandrakant Tongaonkar, Director (Finance), ONGC. 

A major part of this year's green energy budget will fund the growth of 1 GW of new renewable assignments, equally divided between solar and wind.  "We have a target of 10 GW by 2030, which we think we should be in a position to comfortably reach," Tongaonkar mentioned.

To expand its renewable footprint, ONGC NTPC Green Pvt Ltd (ONGPL) — a joint venture between ONGC Green and NTPC Green — recently obtained complete ownership of Ayana Renewable Power for Rs 6,248 crore. Ayana’s portfolio includes 2.1 GW of operational and 2 GW of under-construction assets. Further, ONGC Green completed the acquisition of PTC Energy for Rs 925 crore, adding 288 MW of wind energy capacity.

Beyond renewables, ONGC plans to allocate another Rs 35,000 crore towards its core exploration and production (E&P) business this fiscal year. Underlining future acquisition needs, Tongaonkar stated, "We are conscious of the fact that we need to make more capex in future," ensuring strong cash flow management to support growth while rewarding shareholders.