ONGC-NTPC Green May Acquire Ayana Renewable Power for ₹19,500 Crore—India’s Clean Energy Push Gets Bigger

In March 2025, ONGC NTPC Green Pvt Ltd (ONGPL), a joint venture between Oil and Natural Gas Corporation (ONGC) and National Thermal Power Corporation (NTPC), announced its acquisition of Ayana Renewable Power Private Limited for ₹19,500 crore (approximately $2.3 billion). This strategic acquisition is part of India’s broader effort to diversify its energy mix, reduce its carbon footprint, and increase the use of renewable energy sources. With the global shift toward clean energy, India is also positioning itself to meet its ambitious renewable energy goals.

The deal reflects India’s growing commitment to renewable energy and aligns with its national energy security and climate goals. This article explores the details of the ONGC-NTPC Green acquisition, the role of renewable energy in India’s energy transition, and the implications of this deal for the country’s future.

ONGC-NTPC Green May Acquire Ayana Renewable Power for ₹19,500 Crore

The acquisition of Ayana Renewable Power by ONGC NTPC Green Pvt Ltd for ₹19,500 crore is a major step in India’s renewable energy transformation. This deal will help ONGPL expand its capacity, contribute to India’s clean energy goals, and solidify the country’s position in the global renewable energy market. As India continues its journey toward a sustainable, low-carbon future, investments like this will play a crucial role in meeting the nation’s ambitious energy goals.

The Role of ONGC NTPC Green Pvt Ltd

ONGC NTPC Green Pvt Ltd (ONGPL) was formed in November 2024 as a 50:50 joint venture between ONGC and NTPC Green Energy Ltd. Both ONGC and NTPC are state-owned enterprises with extensive experience in the energy sector. ONGC, historically a leader in fossil fuel exploration and production, has shifted its focus toward cleaner, sustainable energy sources as part of its long-term strategy. NTPC, on the other hand, is India’s largest power generation company, with increasing investments in renewable energy.

The formation of ONGPL represents a commitment to India’s energy transition. The joint venture aims to boost India’s renewable energy capacity and help the country achieve its net-zero emissions target by 2050. The acquisition of Ayana Renewable Power is ONGPL’s first major strategic move, and it reflects a growing trend in India’s energy landscape—public sector companies are taking an active role in the clean energy revolution.

Why Ayana Renewable Power?

Ayana Renewable Power, founded in 2018 by British International Investment Plc (BII), has quickly become a prominent player in India’s renewable energy sector. The company has a 4.1 GW portfolio of operational and under-construction assets, with an additional 1 GW development pipeline. These assets are spread across various Indian states and are contracted with reliable off-takers such as SECI, NTPC, GUVNL, and Indian Railways.

The acquisition of Ayana is a significant move for ONGPL, as it provides access to established renewable energy infrastructure that is already operational or under construction. For ONGPL, Ayana’s well-diversified and geographically spread assets offer strategic value and a risk-mitigated portfolio. The acquisition will accelerate ONGPL’s efforts to diversify its energy portfolio and contribute to India’s renewable energy transition.

The Strategic Significance of the Acquisition

The acquisition of Ayana Renewable Power is a critical step in achieving India’s renewable energy goals. India has set an ambitious target of achieving 500 GW of non-fossil fuel-based electricity generation by 2030. This target is part of the country’s broader commitment to reduce carbon emissions and tackle climate change. The ONGPL-Ayana deal aligns with India’s plan to increase its reliance on solar, wind, and hydropower while reducing its dependence on coal.

In addition to helping India achieve its energy goals, the deal also strengthens ONGPL’s ability to contribute to India’s energy security and economic growth. The increased investment in renewable energy will create jobs, stimulate technological advancements, and make India a more competitive player in the global clean energy market. Furthermore, ONGPL’s acquisition will contribute to the global green energy movement, positioning India as one of the key players in reducing global emissions.

India’s Renewable Energy Policies and Goals

India has recognized the importance of renewable energy in achieving climate goals and sustainable development. Over the past decade, India has significantly ramped up its renewable energy capacity through various policy measures. Some of the key policies that support India’s transition to renewable energy include:

1. National Action Plan on Climate Change (NAPCC): This framework aims to address climate change while promoting sustainable development. The plan includes 8 national missions, including a mission on solar energy and energy efficiency.
2. Renewable Purchase Obligations (RPO): These obligations require states and utilities to purchase a certain percentage of their electricity from renewable sources. The RPO is a key tool for incentivizing renewable energy production.
3. Solar Park Scheme: The Indian government has promoted the establishment of solar parks to make it easier for developers to set up large-scale solar power plants. This scheme has been critical in increasing India’s solar capacity.
4. Wind-Solar Hybrid Policy: This policy aims to promote the generation of energy through both solar and wind sources simultaneously, optimizing land use and improving efficiency.
5. Green Energy Corridor: This initiative focuses on developing transmission infrastructure to support the integration of renewable energy into the grid, addressing the challenges of grid stability and energy storage.

India is also a signatory to the Paris Agreement and has made significant strides toward achieving its carbon neutrality targets. The country has committed to reducing the carbon intensity of its GDP by 33-35% by 2030 compared to 2005 levels.

The Global Context: Growing Demand for Renewable Energy

India’s renewable energy transition is not happening in isolation. Globally, there has been a significant shift toward clean and sustainable energy sources, driven by international climate agreements and a growing recognition of the need to address climate change. Several factors have contributed to this global transition:

1. International Agreements: The Paris Agreement (2015) set the global framework for reducing carbon emissions and limiting global temperature rise. Many countries have committed to achieving net-zero emissions by 2050, and renewable energy plays a central role in these efforts.
2. Technological Advancements: Improvements in solar panel efficiency, wind turbine technology, and energy storage have made renewable energy more competitive compared to fossil fuels. These innovations have helped lower the cost of renewable energy, making it more accessible for countries around the world.
3. Investment in Green Technologies: Countries like the United States, Germany, and China are investing heavily in renewable energy technologies. The increasing demand for green technologies has created a global market for renewable energy solutions, opening up new opportunities for companies like ONGPL.
4. Corporate Sustainability: Many multinational corporations are committing to 100% renewable energy goals as part of their sustainability strategies. This demand is driving global investments in renewable energy infrastructure and technologies.

India’s Renewable Energy Challenges

Despite the impressive progress made by India in renewable energy, several challenges remain in ensuring a smooth transition to a cleaner, more sustainable energy system:

1. Infrastructure Development: India’s renewable energy infrastructure is still in the early stages of development. The country needs to significantly increase grid capacity, develop energy storage solutions, and expand its transmission network to accommodate the growing share of renewable energy.
2. Land Acquisition: Renewable energy projects, especially solar and wind farms, require large plots of land. Securing land for such projects can be a complex and time-consuming process, particularly in regions with high population densities.
3. Financing: While India has made significant strides in attracting investment for renewable energy, securing financing for large-scale projects remains a challenge. Public-private partnerships, such as the ONGPL-Ayana deal, are essential in overcoming these financing barriers.
4. Policy and Regulatory Risks: The renewable energy sector is highly influenced by government policies. Changes in regulations or the removal of subsidies can create uncertainty for investors. Ensuring a stable and predictable regulatory environment is crucial for the long-term success of the sector.
5. Intermittency of Renewable Energy: Solar and wind energy are intermittent sources of power, meaning they depend on weather conditions. As a result, energy storage and grid management are critical to ensuring that renewable energy can meet demand reliably.

What the Acquisition Means for ONGPL

For ONGPL, the acquisition of Ayana Renewable Power represents a significant step forward in its journey to become a leading renewable energy player. With Ayana’s assets in hand, ONGPL will be able to:

• Expand its renewable energy capacity rapidly, gaining access to a diversified and high-quality portfolio.
• Contribute to India’s ambitious renewable energy targets, helping to meet the government’s goal of achieving 500 GW of renewable energy by 2030.
• Leverage Ayana’s established contracts with high-credit off-takers, ensuring financial stability and revenue generation.
• Position itself as a key player in India’s green energy revolution, making it an attractive partner for future projects.

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Frequently Asked Questions (FAQs)

Q1: Why is ONGC NTPC Green acquiring Ayana Renewable Power?
A1: The acquisition allows ONGPL to expand its renewable energy portfolio quickly by integrating Ayana’s established infrastructure and assets. This supports ONGPL’s strategy to accelerate India’s clean energy transition.

Q2: What are the main benefits of this acquisition for India?
A2: This acquisition strengthens India’s renewable energy sector by contributing to the country’s 500 GW renewable energy goal by 2030. It also helps ONGPL support NTPC’s net-zero targets for 2050 and contributes to India’s energy security.

Q3: How does India’s renewable energy policy support this acquisition?
A3: India’s renewable energy policies, including RPOs and solar park schemes, provide a favorable environment for investments in clean energy. The acquisition aligns with the government’s long-term goals to boost renewable energy capacity and reduce reliance on fossil fuels.