Oil and Natural Gas Corporation (ONGC) and NTPC Green Energy are reportedly in discussions to form a consortium to bid for Ayana Renewable Power.
Ayana Renewable, a prominent player in the renewable energy sector, is owned by the National Investment and Infrastructure Fund (NIIF). Sources suggest that while ONGC and NTPC Green Energy may collaborate on the bid, ONGC is also considering the possibility of making a solo bid. The competition to acquire Ayana Renewable is intensifying, with JSW Neo Energy, Sekura Energy, Masdar, Macquarie, and Sembcorp also expressing interest. NIIF is expected to finalise a shortlist of bidders in the coming weeks. The shortlisted entities will then be invited to conduct due diligence before submitting binding financial proposals. This process will provide a clearer picture of the competitive landscape and the strategic interests of the involved parties.
Earlier this year, ONGC launched ONGC Green, a dedicated subsidiary focusing on renewable energy projects. This initiative underscores ONGC’s commitment to diversifying its energy portfolio and investing in sustainable energy sources. Similarly, NTPC Green Energy, which is preparing for an initial public offering (IPO), has been actively seeking opportunities to expand its renewable energy footprint. Ayana Renewable Power boasts a robust pipeline of over 4 GW of solar, wind, and hybrid power projects across multiple states in India. With an operational capacity of 1.3 GW in Andhra Pradesh, Karnataka, and Rajasthan, Ayana Renewable is a substantial entity in the renewable energy sector. The acquisition of Ayana would significantly bolster the renewable energy capabilities of either ONGC, NTPC Green Energy, or any other successful bidder.
The potential collaboration between ONGC and NTPC Green Energy could lead to a formidable consortium capable of making a compelling bid for Ayana Renewable. Both companies have previously collaborated on offshore wind energy projects, highlighting a synergy that could be advantageous in this acquisition. This potential acquisition aligns with the broader strategic goals of ONGC and NTPC Green Energy to enhance their renewable energy portfolios. The move is also reflective of the increasing trend among energy giants to invest in sustainable and renewable energy sources, driven by global shifts towards reducing carbon footprints and achieving energy security.
As the bidding process progresses, the focus will be on how these energy giants leverage their capabilities and resources to secure a stake in Ayana Renewable Power. The outcome will have significant implications for the renewable energy landscape in India, potentially accelerating the country’s transition towards a more sustainable energy future. The interest of ONGC and NTPC Green Energy in Ayana Renewable Power signifies a strategic push towards expanding their renewable energy investments. With a strong pipeline and operational capacity, Ayana Renewable is poised to be a valuable asset for any acquiring entity, promising substantial growth in India’s renewable energy sector.
