Oil India Limited (OIL), a government-owned entity, is strategically expanding its green energy footprint through a recent partnership with Rajasthan Rajya Vidyut Utpadan Nigam Ltd (RRVUNL), Rajasthan’s state-run power producer, to boost renewable energy generation in the state. This collaboration was officially approved by Oil India's board on Thursday, marking a significant step towards clean power generation in Rajasthan.

The partnership will materialize through a 50:50 joint venture between OIL and RRVUNL. This balanced equity arrangement indicates a strong collaborative effort, leveraging the strengths of both organizations to potentially broaden their operational capabilities and market reach within the renewable energy sector.

In another significant decision, the Oil India board has also approved the transfer of its renewable energy assets to its wholly-owned subsidiary, OIL Green Energy Ltd. This transfer will be executed at book value, ensuring a smooth transition of assets within the company's structure. OIL Green Energy Ltd was established in January of this year to specifically manage Oil India’s renewable energy businesses. The subsidiary will focus on energy generation through various non-conventional sources, including wind, hydro, solar, tidal, geothermal, biomass, steam, wave, waste, and hybrid projects.

These strategic moves underscore Oil India's commitment to diversifying its operations and prioritizing green energy initiatives. The joint venture with RRVUNL could unlock new opportunities for Oil India in the energy sector, potentially blending its expertise in oil and gas with RRVUNL's power generation capabilities. By consolidating its renewable assets under OIL Green Energy, the company aims to sharpen its focus on green energy development, allowing for more effective management and potential expansion of its renewable energy portfolio.

Oil India already possesses a substantial renewable energy portfolio, with 188.1 MW of installed renewable energy capacity. This includes 174.1 MW of wind energy and 14 MW of solar projects spread across Rajasthan, Madhya Pradesh, Gujarat, and Assam. Until FY22, these projects have generated ₹870 crore in revenue, with an investment of ₹1,230.73 crore.

In alignment with India's national objective of achieving net-zero carbon emissions by 2070, Oil India is actively diversifying its operations. This commitment is further demonstrated by their agreement with Bharat Petroleum Corp. Ltd. (BPCL) to establish a joint venture for creating a gas distribution network in Arunachal Pradesh, including CNG stations and piped natural gas (PNG) supply to domestic, commercial, and industrial consumers.

Ranjit Rath, Chairman and Managing Director of OIL, emphasized the company's long-term strategy to accelerate the clean and green energy transition through investments in renewables, green hydrogen, biofuels, and compressed biogas. In line with this vision, Oil India plans to invest ₹25,000 crore by 2040 to expand its footprint in renewable energy and decarbonization technologies. By 2030, OIL aims to source 5-7% of its energy from non-fossil fuel sources, increasing to 12-15% by 2040. This will correspond to achieving a green and alternative energy capacity of 3.5-4 million tonnes of oil equivalent (MTOE) by 2040.

Furthermore, Oil India has been proactively involved in pioneering green energy projects. This includes establishing India's first Anion Exchange Membrane (AEM) technology-based green hydrogen plant at its Jorhat facility in Assam. The company is also developing India's first hydrogen fuel cell electric vehicle (FCEV) bus through its start-up program, SNEH.