The Petroleum and Natural Gas Ministry has approved the formation of a subsidiary company of Oil and Natural Gas Corporation Limited (ONGC) for green energy and gas business.
The company will engage in businesses related to green hydrogen, hydrogen blending, renewable energy solar, wind and hybrid etc., biofuels, biogas business and LNG.
This was informed in the ONGC’s board meeting on Tuesday.
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As per the outcome of the board meeting, the proposed name of the company is “ONGC Green Limited” which is subject to the approval of the Ministry of Corporate Affairs, government of India.
“In continuation of our filing dated 13.02.2021, it is hereby updated that the Company has received approval from the Ministry of Petroleum and Natural Gas (MoPNG) on 05.12.2023 for the formation of a wholly-owned subsidiary company,” the outcome of the meeting read.
“The wholly-owned subsidiary company shall be engaged into the business of value-chains of energy business viz. Green Hydrogen, Hydrogen blending, Renewable Energy (Solar, Wind and Hybrid etc.), Bio-fuels/ Bio-gas business and LNG,” it added.
During the meeting, the Board has also accorded its in-principle approval for the formation of a Joint Venture Company (JVC) with NTPC Green Energy Limited.
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The JVC shall be engaged in the business of Offshore Wind Energy and other Renewable Energy.
India committed to an ambitious five-part “Panchamrit” pledge at COP26 held in 2021. They included reaching 500 GW of non-fossil electricity capacity, generating half of all energy requirements from renewables, and reducing emissions by 1 billion tonnes by 2030.
India also aims to reduce the emissions intensity of GDP by 45 per cent. Finally, India commits to net-zero emissions by 2070.
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India, the world’s third-biggest oil importer and consumer, is dependent on crude oil from various sources in the global market to meet its domestic demand.