New Delhi: Oil India Limited (OIL), the nation’s second-largest national oil company, has approved two major strategic moves to strengthen its renewable portfolio. The company’s board cleared the formation of a joint venture with Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL) and sanctioned the transfer of its renewable energy assets to a green subsidiary. The decisions were finalized at OIL’s board meeting held on Thursday and communicated through a regulatory filing.
Strategic Joint Venture with RRVUNL
OIL announced that the new joint venture with RRVUNL will be formed with an equal 50:50 equity partnership. The collaboration is aimed at scaling up clean energy generation in Rajasthan, aligning with India’s ambitious renewable energy targets. This move marks OIL’s deepening commitment to diversifying its energy portfolio and expanding into sustainable projects alongside state utilities.
Renewable Assets to Shift Under OIL Green Energy
The board also approved the transfer of OIL’s existing renewable energy assets to OIL Green Energy Limited, its wholly owned subsidiary. The transfer will be executed at the book value of the assets, effective from the closure date of the respective Power Purchase Agreements. A Business Transfer Agreement will be executed to complete the process, ensuring operational continuity and streamlined asset management.
Strengthening Renewable Commitments
With these approvals, OIL aims to accelerate its transition into green energy while ensuring transparency in asset transfer. The JV with RRVUNL and the consolidation of renewable assets under OIL Green Energy are expected to bolster OIL’s clean energy capacity and provide a solid foundation for future expansion in the renewable space.
About Oil India Limited
Oil India Limited (OIL) is a Navratna PSU under the Ministry of Petroleum and Natural Gas. As India’s second-largest national oil and gas company, OIL has a diversified portfolio spanning exploration, production, and renewable energy. Through its green energy arm, OIL is focused on advancing the nation’s transition to sustainable and clean energy solutions.
