Indian Oil lines up Rs 1 lakh crore for 18 GW green energy bet

New Delhi: Indian Oil Corp plans to invest about '1 lakh crore to acquire around 12 GW of renewable energy assets and build another 6 GW organically, creating an 18 GW green energy portfolio by 2030, its chairman A S Sahney said.

The country's largest refiner and fuel retailer also plans to list its green energy subsidiary, Terra Clean Ltd, by 2027-28, by which time its renewable portfolio is expected to reach meaningful scale, Sahney told ET.

Terra Clean has received board approval to develop 4 GW of renewable assets, he said, adding that another 2 GW is being executed through Indian Oil NTPC Green Energy Ltd, an equal joint venture between Indian Oil and NTPC. Power generated from the 2 GW JV project will be fully consumed by Indian Oil.


Indian Oil is in discussions with potential sellers to acquire renewable assets. "We are on the lookout and evaluating certain cases," Sahney said. "We can't set a timeline for (any transaction). Our target is to take 10-12 GW in the next 4-5 years." Last year, state-run oil and gas producer ONGC acquired Ayana Renewable Power, which has a 4 GW renewable energy portfolio.

Developing 1 GW of renewable capacity currently costs about '5,000 crore, while acquisitions typically come at a premium. An 18 GW portfolio could therefore require investments of around '1 lakh crore. However, the equity requirement is expected to be no more than '30,000 crore, which the company can comfortably fund over the next five years, Sahney said. Allocating around '5,000 crore annually for renewable energy is modest for a company that typically spends '30,000-35,000 crore a year on capital expenditure. Indian Oil has earmarked '35,000 crore in capex for 2026-27.

Refinery expansions have dominated Indian Oil's capital spending in recent years. With its '1 lakh crore refinery expansion programme set to conclude next fiscal year, a large share of capex over the following five years will shift to renewables, petrochemicals, gas, and other non-refining businesses, Sahney said.

Beyond climate goals, Indian Oil's push into renewables is part of a broader strategy to build new, durable revenue streams.