ONGC Acquires PTC India’s Wind Power Unit to Boost Renewable Energy Portfolio

ONGC Acquires PTC India's Wind Power Unit to Boost Renewable Energy Portfolio
ONGC Acquires PTC India's Wind Power Unit to Boost Renewable Energy Portfolio

In a significant strategic maneuver aimed at bolstering its renewable energy portfolio and diminishing its dependence on fossil fuels, the state-owned Oil and Natural Gas Corporation (ONGC) has triumphantly secured a bid to purchase the wind power unit of PTC India Ltd for a sum of Rs 925 crore. This acquisition is emblematic of ONGC’s unwavering commitment to diversify its business interests, moving beyond its core hydrocarbon operations.

Recently, PTC’s board granted approval for ONGC’s proposal to acquire a 100% equity stake in PTC, valuing the equity at Rs 925 crore. However, the finalization of this acquisition is contingent on the consent of PTC shareholders.

Established on August 1, 2008, PTC boasts a renewable energy portfolio with a total capacity of 288.8 MW. This portfolio 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. PTC has successfully secured long-term agreements with state distribution companies for its entire 288.8 MW wind power project portfolio. In the fiscal year 2022-23, spanning from April 2022 to March 2023, PTC reported a profit of Rs 13.88 crore with a revenue of Rs 296.77 crore.

ONGC has previously articulated its ambitious aspiration to achieve zero carbon emissions by 2038. To materialize this vision, the company has pledged to invest Rs 2 lakh crore, allocating Rs 1 lakh crore for the establishment of 10 gigawatts of renewable energy capacity, a green ammonia plant, and offshore wind energy projects by 2030. The remaining investments will be channeled to meet Scope 1 and 2 net zero carbon emission targets, all while sustaining its exploration and production of oil and gas.

Scope 1 emissions originate directly from sources owned or controlled by a company, while Scope 2 emissions result from the consumption of purchased electricity, steam, or other forms of energy generated upstream from a company’s immediate operations.

Currently, ONGC possesses a 189 MW renewable energy generation capacity, and it aspires to elevate this figure to 10 gigawatts by 2030. The company has already inked a Memorandum of Understanding (MoU) for 5 GW of capacity in Rajasthan and is actively pursuing projects of similar scale. Furthermore, ONGC has plans to establish 25 compressed biogas plants designed to convert agricultural residue into gas suitable for use in automobiles (CNG) and for generating electricity and fertilizer across various industries.

In the fiscal year 2022-23, ONGC achieved a production of 19.584 million tonnes (MT) of oil, representing an increase from the preceding year’s output of 19.545 MT. Projections anticipate that oil production will rise to 20.232 MT in the current fiscal year, from April 2023 to March 2024, and will further increase to 21.265 MT in 2024-25. In terms of natural gas, production is expected to grow from 20.636 billion cubic meters (bcm) in 2022-23 to 20.882 bcm in 2023-24, 22.171 bcm in the following year, and 23.708 bcm in 2025-26.