Oil and Natural Gas Corporation (ONGC) has won a bid to buy PTC India Ltd’s wind power unit for Rs 925 crore, as the state-owned company seeks to diversify its renewable energy portfolio to balance its fossil fuel operations.

In a stock market statement, India’s leading oil and gas producer said that, in addition to strengthening its main business of discovering hydrocarbons, it had expanded into the petrochemicals and power industries over the years.

Oil and Natural Gas Corporation (ONGC) said that it has made several measures for renewable energy power production and now has 189 megawatts (MW) capacity, which includes wind and solar PV facilities scattered across various places.

With a vision to expand its business in renewable energy, the company had participated in the bidding process for acquisition of 100 percent equity stake of PTC Energy Limited (PEL), a wholly-owned subsidiary of PTC India Limited (PTC),” it said.

The PTC board accepted ONGC’s request to acquire a 100% ownership position in PEL for Rs 925 crore last week, according to the company.

The decision is subject to PTC shareholder approval.

PEL, founded on August 1, 2008, has a 288.8 MW renewable energy portfolio that includes 50 MW wind power projects in Madhya Pradesh, 50 MW wind power projects in Karnataka, and 188.8 MW wind power projects in Andhra Pradesh.

For a complete portfolio of 288.8 MW wind power projects, the business has signed into long-term agreements with state distribution corporations.

During the fiscal year 2022-23 (April 2022 to March 2023), PEL earned Rs 13.88 crore on a revenue of Rs 296.77 crore.

PTC India, which is a leading power trading and financial services solutions provider, in a separate filing, said the “date of the extraordinary general meeting and date of signing of shareholder’s agreement will be intimated as and when executed“.

ONGC had already pledged a Rs 2 lakh crore investment to attain zero carbon emissions by 2038. By 2030, the company plans to spend Rs 1 lakh crore in the development of 10 gigatonnes of renewable energy capacity, a green ammonia factory, and offshore wind energy projects. The remaining funds would be used to achieve net zero carbon emissions in Scopes 1 and 2.

All the meantime, it hunts and produces more oil and as. The firm now has 189 MW of renewable power generation capacity. It aims to reach 10 GW by 2030. The company has already inked an agreement for a 5 GW project in Rajasthan and is looking for more projects of a similar magnitude. Furthermore, it intends to build 25 compressed biogas facilities to transform agricultural waste into gas that may be used to power vehicles (CNG) or utilized in industry to create energy and fertilizer.