ONGC to Acquire PTC India’s Renewable Energy Subsidiary for ₹9.25 Billion

PTC Energy operates a 288.8 MW wind power portfolio

October 20, 2023


Oil and Natural Gas Corporation (ONGC) is set to acquire PTC Energy Limited (PEL), a wholly-owned subsidiary of PTC India, at a transaction valued at ₹9.25 billion (~$111.18 million).

Through PEL, its subsidiary formed in 2008, PTC has commissioned seven wind power projects spread across Andhra Pradesh, Karnataka, and Madhya Pradesh with a generation capacity of 288.8 MW.

PTC Energy was incorporated with the aim of developing an asset base to expand its business to generation, supply, distribution, transmission, and dealing in all forms of energy. This included importing and exporting coal, converting coal or fuels into electricity, fuel linkages, and providing advisory services in the energy sector. Following the adverse situation in the coal trading business, the company decided to turn its focus on the renewable energy sector.

The company has entered into long-term power purchase agreements with state distribution companies for the entire wind portfolio.

This transaction is subject to the fulfillment of conditions precedent and other terms and conditions as per the share purchase agreement to be executed between the parties. It may also need approvals under applicable laws and will be subject to shareholders’ approval of PTC India.

ONGC has announced plans to invest over ₹1 trillion (~$12 billion) to increase and accelerate its renewable energy portfolio by 2030.

Last November, PTC India’s tender to procure 500 MW of hybrid renewable energy (wind and solar) Tranche-I, with a greenshoe option of 500 MW, received a strong response, with bids amounting to 3,500 MW from 14 renewable energy generators.

This aligns with PTC’s plans to procure clean energy power renewable power of up to 5,000 MW in tranches of 500- 1,000 MW each in the next two or three years.

In November 2021, SJVN signed a pact with PTC India to develop products for supplying round-the-clock renewable energy. The two companies will jointly develop products for renewable power supply from SJVN’s projects bundled with available market capacity.