Indian Oil Approves Rs 5,215 Crore Investment in Renewable Energy
In a significant move, Indian Oil Corporation (IOCL), the country’s largest refiner, announced a Rs 5,215 crore investment to build a 1 gigawatt (GW) renewable energy capacity. This ambitious plan, approved by the IOCL board, involves setting up a mix of solar, wind, and hybrid projects across the nation in a phased manner.
The company will establish a wholly-owned subsidiary to spearhead its renewable energy operations. This subsidiary will receive an equity infusion of Rs 1,304 crore from IOCL.
This investment marks a strategic shift for IOCL, traditionally focused on oil and gas. The company is now actively expanding its presence in clean energy sectors like solar, wind, hydrogen, and electric vehicle charging infrastructure. As part of this push, IOCL aims to install EV charging stations at 10,000 of its fuel stations and has already begun rolling out battery-swapping facilities in Delhi NCR.
IOCL recently signed a preliminary agreement with Panasonic to manufacture lithium-ion cells for two-wheeler and three-wheeler electric vehicles. The company has partnered with Israel’s Phinergy for a pilot project to manufacture aluminum-air batteries.
Serentica Renewables Plans ₹30,000 Crore Investment by FY27
Serentica Renewables, a subsidiary of Vedanta Group, announced plans to invest up to ₹30,000 crore by FY27 (Financial Year 2027) across its existing and new renewable energy projects.
“Our commitment to renewable energy remains strong,” said Pratik Agarwal, Chairman of Serentica Renewables. “We plan to invest ₹25,000-30,000 crore over the next three years to achieve our goal of 10 GW of renewable energy capacity by 2027.”
This ambitious target represents a significant portion of Serentica’s overall goal of reaching 17 GW capacity by 2030. To achieve this, the company will focus on the commercial and industrial (C&I) sector, developing customized solutions to meet their diverse energy needs. This includes offering tailored contracts and participating in government tenders for round-the-clock (RTC) and firm & dispatchable renewable energy (FDRE) projects.
Serentica also plans to invest heavily in wind and solar RTC hybrid projects, with an allocation of around ₹15,000 crore earmarked for FY25 (Financial Year 2025).
“We have secured a significant portion of our equity funding through a $650 million commitment from KKR. To fuel further growth, we plan to reach out to existing shareholders and new investors for an additional $300 million,” Agarwal added.
The company has already taken steps to secure financing for its projects. Earlier this year, Serentica raised ₹3,500 crore through a foreign currency loan specifically designated for its RTC project.
Source: ESG Times
