A joint venture between state-owned oil and gas explorer ONGC and thermal power company NTPC has acquired 100 per cent equity in Bengaluru-based Ayana Renewable Power for Rs 195 billion. This acquisition is a landmark as it represents the first major strategic investment by government-owned companies in India’s renewable energy sector. The announcement was made during the India Energy Week in New Delhi.

This transaction is the second-largest in the country’s renewable energy sector, following Adani Green Energy’s acquisition of SoftBank’s renewable energy assets in 2021 for Rs 260 billion. The acquisition was completed by ONGC-NTPC Green Energy (ONGPL), a joint venture of ONGC Green (OGL) and NTPC Green Energy (NGEL), which acquired shares from the National Investment and Infrastructure Fund (NIIF), British International Investment Plc (BII), and Eversource Capital.

Ayana Renewable Power, which currently has 4 gigawatts (GW) of operational and under-construction assets, was founded in 2018 by BII and later received investments from NIIF and Eversource Capital in 2019. ONGPL’s acquisition of Ayana marks its first strategic investment since its establishment in November 2024. This move aligns with the net-zero targets set by ONGC and NTPC for 2038 and 2050, respectively.

The acquisition is expected to support ONGPL’s goal of expanding its renewable energy footprint, with plans to utilize Ayana’s platform to meet India’s growing demand for clean energy. The transaction was advised by Deloitte Touche Tohmatsu India LLP and supported by JSA Advocates and Solicitors for legal counsel.

News source: Business Standard