ONGC Joins the Race to Acquire Ayana Renewable Power

State-run ONGC has made a non-binding offer to buy Ayana Renewable Power, which is open to selling up to 100% of its stake for an estimated $800 million, according to sources.

Other companies like Sembcorp Industries Ltd, Macquarie Group, and JSW Neo Energy have also made non-binding offers for Ayana. Ayana has a 5-gigawatt portfolio of both operational and under-construction green energy projects across Andhra Pradesh, Tamil Nadu, Karnataka, Rajasthan, and Gujarat. By the end of 2025, Ayana aims to double its portfolio to 10 gigawatts.


These companies, including ONGC, are expected to be shortlisted to conduct further due diligence before submitting final bids. The deal is expected to be completed within the next six months.

As India’s traditional hydrocarbon sector faces changes, ONGC is looking to invest in clean energy. Previously, ONGC was interested in buying Finnish state-run utility Fortum Oyj’s Indian solar projects but lost the bid to Petronas’ unit Gentari Sdn Bhd. This makes acquiring Ayana even more important for ONGC.

ONGC’s Net-Zero Goals

In November, Mint reported that Standard Chartered was managing the sale of Ayana Renewable Power, and Ayana’s shareholders were looking to raise an additional $400 million for growth.

Ayana Renewable Power, based in Bengaluru, is mostly owned by the National Investment and Infrastructure Fund Ltd (NIIF), India’s largest infrastructure fund. Other shareholders include the UK government’s British International Investment Plc and Eversource Capital.

NIIF, sponsored by the Indian government, manages about $5 billion in equity capital across various infrastructure sectors, including renewable energy.

Global oil companies like Shell, Total, Thailand’s PTT Group, and Petronas are already active in India’s green energy sector.

ONGC plans to spend ₹2 trillion on green initiatives by 2038 to reduce its carbon footprint and achieve net-zero emissions by then. As of the 2022-23 financial year, ONGC had a renewable energy portfolio of 189 megawatts, which it plans to expand to 10 gigawatts by 2030.

In May, The Economic Times reported that JSW Neo Energy and Sekura Energy, along with Masdar, Sembcorp, and Macquarie, had also made non-binding offers for Ayana.

Spokespersons for Standard Chartered, British International Investment Plc, Macquarie Group, and Eversource Capital declined to comment. A spokesperson for JSW Energy said they do not comment on market rumors.

Spokespersons for NIIF, Ayana Renewable Power, ONGC, and Sembcorp did not respond to queries.

India’s Renewable Energy Push

India has an installed renewable energy capacity of 180.79 gigawatts, including 73.31 gigawatts of solar and 44.73 gigawatts of wind power. The government aims to add 50 gigawatts of green energy capacity each year to reach 500 gigawatts by 2030.

Attracted by the opportunities in India’s energy transition, several deals are in progress in the renewable sector. For instance, Just Climate LLP and Singapore’s CapitaLand Investment Ltd are exploring the acquisition of Radiance Renewables Pvt. Ltd.

Other companies like Actis LLP’s BluPine Energy, Sembcorp, Edelweiss Infrastructure Yield Plus Fund’s Sekura Energy, Torrent Power, and JSW Group are looking to buy Brookfield Renewable’s 1.6 gigawatt portfolio.

INOXGFL Group has hired EY to manage the sale of a majority stake in its commercial and industrial business. Additionally, Serentica Renewables, promoted by Sterlite Power, plans to sell a minority stake, and Sekura Energy is the frontrunner to buy 350 megawatts of solar projects from O2 Power.

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