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ONGC and NTPC to Form JV for Renewable Energy Business
The Oil and Natural Gas Corporation Limited (ONGC) and India’s largest power generation utility NTPC ltd are planning to set up a Joint Venture (JV) company for the renewable energy business. According to an ONGC statement, the two Maharatna’s entered into a Memorandum of Understanding (MoU) on May 21, 2020, in Delhi to formalise this arrangement. The MoU will enable both companies to achieve their targets in the renewable energy business. The MOU was signed by ONGC Director (Finance) and In-charge Business Development and Joint Ventures Subhash Kumar and Director (Commercial) NTPC A K Gupta. ONGC CMD Shashi Shanker and NTPC CMD Gurdeep Singh (on Virtual conferencing) along with the Directors of two public enterprises witnessed the occasion. As per the MoU, NTPC and ONGC will explore and set up renewable power assets including offshore wind, in India and overseas, and explore opportunities in the fields of sustainability, storage, e-mobility, and ESG (Environmental, Social and Governance) compliant projects. ONGC has a renewable portfolio of 176 MW comprising 153 MW wind power and 23 MW of solar. Through this collaboration with NTPC, ONGC envisages significant growth in its presence in the Renewable Power sector as outlined in its Energy Strategy 2040 document. Similarly, NTPC, with 920 MW of installed renewable power capacity in its portfolio with about 2300 MW of renewable energy projects under construction has set its sights at reaching 32 GW by 2032. A target that will benefit from this tie-up by expanding its footprint in offshore wind and overseas renewable energy projects as well. Recently, we had reported that NTPC and Solar Energy Corporation of India (SECI) will soon be signing an agreement with the Rajasthan government for setting up of 2 renewable energy parks of 5 GW capacity each. This will be the first phase of the proposed 25 GW ultra mega renewable energy park in Jaisalmer, Rajasthan. During the meeting, further, contours for setting up of 25 GW renewable energy park in the Khavada village of Gujarat were also finalised by MNRE in consultation with the Ministry of Defence along with the state Government of Gujarat. In March, NTPC Vidyut Vyapar Nigam Limited’ (NVVN) had issued a tender, inviting online bids from eligible bidders for the development of a 50 MW grid-connected solar PV power project at Panchet in Jharkhand.