India’s biggest oil company Indian Oil Corporation has announced that it will invest Rs 1,660.15 crore as equity in a recently established joint venture with energy major company NTPC Ltd in order to establish renewable power plants.
For the unversed, in June this year, IOC and NTPC came up with a 50:50 joint venture company, IndianOil NTPC Green Energy Pvt Ltd. The idea is to come up with renewable energy projects in order to meet the huge power needs of refineries of the oil company.
IOC stated in a stock exchange filing that its Board in a meeting on 13 October 2023 ”has accorded approval to the investment plan of the joint venture company for setting up of renewable energy power plants and approved the equity contribution of up to Rs 1,660.15 crore towards Indian Oil’s share of 50 percent in the equity share capital of the JVC.”
The company announced at that period in June 2023 that IndianQil NTPC Green Energy Private Limited will design renewable energy-based power projects (viz. solar PV, wind, any other renewable energy, energy storage, or any combination of the same). The intention is to meet the round-the-clock (RTC) power requirements of new projects of IndianQOil Refineries.
So, ideally the company intends to create a minimum capacity of 650 MW of round-the-clock renewable power to achieve the energy needs of IOC refineries.
It looks like several companies are coming up with exploration of investment opportunities in the EV sector. After all, the government of India’s recent announcements to support the electric vehicles industry have led to many firms exploring this field further.
Electric Vehicles come in the form of electric cars, electric two-wheelers, electric rickshaws, etc. and it has been touted to be the next big thing in a progressive country like India today. So, it doesn’t really come as a big surprise if huge companies like IndianOil and even L&T etc. come up with such announcements of investments.
In any business, investment is very much required for its long-term sustainability. Also, the government-owned and private companies are quite eager to adopt the latest trends happening in the world and implement the same in India as well.
After all, future income is generated only when companies adopt the right investment strategies. Otherwise, there are several companies like Byju’s or Disney or Tata NANO that failed abruptly due to its lack of innovativeness and right team putting their brains in the right way.
Coming back to Indian Oil Corporation, well it is an Indian multinational oil and gas company that has been running under the ownership of the Ministry of Petroleum and Natural Gas, Government of India. Founded on 30 June 1959, the company’s key person includes Shrikant Madhav Vaidya who serves as the Chairman of Indian Oil Corporation. The company’s headquarters are situated in New Delhi. It is a public sector company that has its operations taken care of by the Ministry of Petroleum and Natural Gas.