Ministry of Petroleum and Natural Gas has approved the formation of a subsidiary company by Oil and Natural Gas Corporation Limited (ONGC), dedicated to the green energy and gas sector. This important step was announced during ONGC’s board meeting on January 23, 2024, reflecting the company’s commitment to diversify its portfolio and contribute to sustainable energy solutions.
Wholly Owned Subsidiary: ONGC Green Limited
- The newly approved subsidiary company, which has been provisionally named “ONGC Green Limited,” is expected to be a wholly owned unit of ONGC. However, the proposed name is subject to approval Ministry of Corporate Affairs, Government of India.
- The subsidiary is envisioned to engage in various aspects of the energy sector value chain focusing on green hydrogen, hydrogen blending, renewable energy (solar, wind and hybrid), biofuels, biogas and liquefied natural gas (LNG).
Joint Venture with NTPC Green Energy Limited
- Apart from the formation of ONGC Green Limited, the Board also gave in-principle approval for setting up a Joint Venture Company (JVC). NTPC Green Energy Limited.
- This strategic partnership aims to explore the growing offshore wind energy sector and other renewable energy opportunities.
- The collaboration with NTPC Green Energy Limited is in line with ONGC’s broader vision to diversify its energy portfolio and contribute to India’s ambitious renewable energy targets.
- This step is important in the context of the country’s commitment “Panchamrit” pledge taken at COP26 in 2021.
India’s renewable energy commitments
- India, committed to environmental sustainability, announced its “Panchamrit” pledge at COP26. The pledge includes Ambitious targets such as reaching 500 GW of non-fossil power capacity.
- Generating 50% of energy from renewable energy, Reduce emissions by 1 billion tonnes by 2030, Reducing emissions intensity of GDP by 45%, and achieving net-zero emissions by 2070.
- As the world’s third largest oil importer and consumer, India’s dependence on global crude oil sources underlines the need for strong initiatives in the green energy and gas sector.
- The approval of ONGC Green Limited and collaboration with NTPC Green Energy Limited signals an important step towards aligning with India’s sustainable energy goals and global environmental commitments.
Important questions related to exam
1. What type of energy does the joint venture company with NTPC Green Energy focus on?
2. What is India’s commitment regarding emissions by 2030 as part of COP26?
3. Which ministry approved the formation of ONGC’s subsidiary?
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