ONGC Approves INR 3,300 Crore for Ayana Renewable Power Acquisition

Oil and Natural Gas Corporation Ltd (ONGC) has approved an investment of INR 3,300 crore in its wholly owned subsidiary, ONGC Green Ltd. (OGL).

The investment will be executed through a rights issue, enabling a 100 percent acquisition of equity in Ayana Renewable Power Private Limited.

The acquisition will be structured through ONGC NTPC Green Pvt. Ltd. (ONGPL), a 50:50 joint venture equally owned by OGL and NTPC Green Energy Ltd. (NGEL). ONGPL will hold the acquired stake in Ayana Renewable Power.

It may be mentioned that Ayana Renewable Power is a major integrated renewable energy platform with a total operational and under-construction portfolio of 4.1 GW across several resource-rich states. The company has secured power purchase agreements (PPAs) with reputed off-takers, including Solar Energy Corporation of India (SECI), NTPC, Gujarat Urja Vikas Nigam Ltd (GUVNL), and Indian Railways.

In addition to the Ayana investment, ONGC’s board has also approved INR 4,920 crore in related party transactions for its Mozambique LNG project. ONGC Videsh (OVL) will allocate up to INR 1,500 crore in Beas Rovuma Energy Mozambique Ltd. (BREML), which will be converted into redeemable preference shares.

Furthermore, OVL Overseas IFSC Ltd (OOIL) will provide a senior loan sponsorship of USD 379.3 million (INR 3,270 crore) to Mozambique LNG1 Financing Company Ltd, a financing entity for the Area 1 Mozambique LNG Project. To support project financing, ONGC has also extended a corporate guarantee of USD 379.3 million (INR 3,270 crore) to Mozambique LNG1.