New Delhi: State-owned Oil India Ltd (OIL) on Thursday said its board has approved forming a joint venture with Rajasthan Rajya Vidyut Utpadan Nigam Ltd (RRVUNL) and transferring its renewable energy assets to its wholly owned subsidiary OIL Green Energy Ltd.
The company said the joint venture will be set up as a 50:50 partnership between OIL and RRVUNL. The arrangement is expected to strengthen OIL’s presence in Rajasthan, where the company has been pursuing solar and wind energy projects.
The board also cleared the transfer of OIL’s existing renewable energy assets to OIL Green Energy Ltd at book value. The transfer will take place under a Business Transfer Agreement, effective upon closure of relevant power purchase agreements, the company said in its stock exchange filing.
The company said the move is part of its strategy to consolidate green assets under a dedicated subsidiary. OIL Green Energy Ltd was created to support diversification into solar, wind and green hydrogen.
OIL, the country’s second-largest state-owned oil and gas producer after ONGC, has been stepping up investments in clean energy in line with India’s target of achieving 500 GW of non-fossil fuel capacity by 2030. It currently operates solar projects in Assam, Rajasthan and Gujarat, and has invested in wind power projects in Rajasthan and Madhya Pradesh.
