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Informist, Friday, Aug. 22, 2025

 

By Priyasmita Dutta

 

NEW DELHI - ONGC Green Ltd. is planning a capital expenditure of around INR 60 billion in 2025-26 (Apr-Mar), Chief Executive Officer Sanjay Kumar Mazumder said Friday. The company, a wholly-owned subsidiary of Oil and Natural Gas Corp. Ltd., aims to set up 1.2 gigawatt of new green-field energy projects in two tranches in FY26, in addition to some investments in brownfield projects, Mazumder told Informist on the sidelines of BloombergNEF Summit here.

 

"We are planning for 10 gigawatt energy generation capacity by 2030, so 1.2 gigawatt will take us closer to our target," Mazumder said. Another ONGC Green official who was present at the event said that the broader plan is to achieve 2.4 gigawatt energy capacity in the next two to three financial years.

 

ONGC Green is the renewable energy arm of the ONGC, established to diversify the company's business into green energy projects. ONGC Green has formed a 50:50 joint venture with NTPC Green Energy, called ONGC NTPC Green Pvt. Ltd., to develop renewable energy assets, including solar and offshore wind projects.

 

ONGC NTPC Green acquired 100% equity stake in Ayana Renewable Power for an enterprise value of INR 195 billion in March. With Ayana's energy capacity of 4.1 gigawatt, the 1.2 gigawatt-worth projects will significantly boost capacity by the end of FY26, Mazumder said.

 

According to the chief executive officer, if ONGC Green wins the bids for greenfield projects, it may need to raise around INR 80 billion to INR 100 billion in FY26. "Some of this funding will come directly from ONGC and the rest of it will come from debt market," Mazumder said. "The timing of raising funds will however depend on when we win the bids for the projects," he said. ONGC had invested INR 30 billion in the acquisition of Ayana, which has added to ONGC Green's capital, he added. ONGC Green had also acquired 100% equity stake in PTC Energy Ltd. in March.

 

According to the second official, the company has internally worked out a plan to raise INR 500 billion by 2030 to bolster its financial strength. The INR 500 billion will be raised through debt instruments and capital infusion by the parent company.

 

Speaking about its capital-raising plan, Mazumder said that the company may consider listing on the bourses in the next two to three financial years. "We are still a new kid on the block, another 2-3 years of reputation will add to our market valuation," he said.

 

ONGC posted a net profit of INR 115.54 billion for the June quarter, up 18% on year. On Friday, shares of the company closed at INR 236.29 on the National Stock Exchange, down 0.8%.  End

 

Edited by Ashish Shirke

 

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