Indian Oil Corp.’s Terra Clean, a wholly-owned subsidiary, is reportedly in discussions to acquire a 50% stake in Fourth Partner Energy, a renewable energy solutions provider. This move would mark Indian Oil Corp's first acquisition in the renewable energy sector.
The proposed deal structure involves both primary and secondary share transactions. This would provide a partial exit for existing stakeholders in Fourth Partner Energy, including entities like the World Bank and the Asian Development Bank.
Terra Clean Ltd. was incorporated in May 2024 as a wholly-owned subsidiary of Indian Oil Corporation (IOC). It was established to spearhead IOC's low-carbon and sustainability initiatives, focusing on clean and renewable energy solutions. To drive this ambition, the IndianOil Board had approved an equity investment of INR 1303.75 crore for the development of 1 GW of renewable energy capacity. Subsequently, an additional equity infusion of INR 1,086 crore into Terra Clean Ltd. was approved for the implementation of 4.3 GW of additional renewable energy capacity. Indian Oil aims to scale up to 31 GW of renewable energy capacity by 2030 and achieve net-zero operational emissions by 2046.
Fourth Partner Energy, founded in 2010, is a Hyderabad-based company that provides commercial and industrial (C&I) clients with renewable energy solutions. The company offers services encompassing project evaluation, design, financing, procurement, construction, and operation and maintenance of solar infrastructure. As of July 31, 2025, the company has 463 employees.
The company has executed over 3000 projects across distributed solar and open access. Fourth Partner Energy has a diverse clientele across various industries, including ITeS, chemicals, pharmaceuticals, manufacturing, retail, and automotive. Fourth Partner Energy has garnered the trust of over 80 corporate houses in India, including Coca Cola, Pepsi, Nestle, and Mars.
Fourth Partner Energy has raised $564M in funding over 12 rounds. Its latest funding round, a Series D round on Aug 06, 2024, raised $275M. Investors include Norfund, The Rise Fund, Bank of America, TPG, IFC and Infuse Ventures. The company's valuation was ₹3,300Cr as of January 27, 2025.
Indian Oil's interest in Fourth Partner Energy aligns with its broader strategy to expand its renewable energy portfolio and transition to a low-carbon future. The company aims for 18 GW of capacity by 2028 and 31 GW by 2030. Indian Oil is scaling up its renewable energy efforts through both organic and inorganic means.
