Oil India (OIL) and Rajasthan Rajya Vidyut Utpadan Nigam (RVUNL) have signed an agreement to establish a joint venture company for developing 1.2 GW of renewable energy projects in Rajasthan.

The proposed projects will include 1,000 MW of solar and 200 MW of wind energy, which will be developed within RVUNL’s Renewable Energy Park.

The agreement follows Oil India’s board of directors’ approval for the formation of a 50:50 joint venture with RVUNL. The board also approved the transfer of renewable energy assets to OIL Green Energy, a wholly owned subsidiary that drives Oil India’s clean energy portfolio, which includes renewable energy projects, compressed biogas, energy storage, and green hydrogen.

OIL Green Energy was set up in January this year to generate energy through non-conventional or renewable sources, including wind, hydro, solar, tidal, geothermal, biomass, steam, wave, and waste.

Oil India has set aside ₹80 billion (~$907 million) for capital investments in solar and onshore wind energy projects. It plans to increase renewable energy capacity to 1.1 GW by 2030 and 5 GW by 2040.

As of March 31, 2025, Oil India’s total installed renewable energy capacity was 188.1 MW, comprising 174.1 MW from wind and 14 MW from solar energy. The operations are spread across Rajasthan, Madhya Pradesh, Gujarat, and Assam. During the financial year 2025, the company generated revenue of ₹1.12 billion (~$12.68 million) from its renewable energy projects.

In 2022, Oil India commissioned a pure green hydrogen pilot plant with an installed capacity of 10 kilograms per day at its Jorhat Pump Station in Assam on Thursday.

The company also supported the development of India’s first 9-meter H2 fuel cell electric bus, powered by a 60 KW PEM fuel cell engine.

Recently, Indraprastha Gas entered a joint venture agreement with Rajasthan Rajya Vidyut Utpadan Nigam for setting up a 500 MW solar project in the state. Under the agreement, IGL will hold a 74% majority stake in the joint venture company, while RVUNL will hold the remaining 26%.

In August this year, RVUNL and GAIL (India) entered into a joint venture agreement to develop large-scale renewable energy projects and transfer existing gas-based power assets in Rajasthan.