State run oil explorer ONGC and power generator NTPC have signed a pact to form a joint venture company for renewable energy.
The two companies, both public sector 'maharatnas,' signed a memorandum of understanding on Thursday for the JV which aims to enable both companies to achieve their targets in the renewable energy business.
"As per the MoU, NTPC and ONGC will explore and set up renewable power assets including offshore wind, in India and overseas, and explore opportunities in the fields of sustainability, storage, E-mobility and environmental, social and governance compliant projects," a statement from ONGC said.
ONGC has a renewable portfolio of 176 megawatt (me), which includes 153 mw wind power and 23 mw of solar power capacity. NTPC has 920 mw of installed renewable power capacity in its portfolio, and another 2,300 mw of projects under construction. NTPC aims to scale up the capacity to 32 gigawatt by 2032, and hopes to benefit from this tie up by expanding its footprint in offshore wind and overseas renewable energy projects as well.
"Through this collaboration with NTPC, ONGC envisages significant growth in its presence in the Renewable Power sector as outlined in its Energy Strategy 2040 document," ONGC said.
The pact was signed by Subhash Kumar, director (finance) at ONGC who will also be responsible for business development of this JV, and AK Gupta, NTPC's director (commercial).