ONGC Approves ₹3,300 Crore Investment in ONGC Green

Oil and Natural Gas Corporation Ltd (ONGC), today, on March 25, 2025,  announced a ₹3,300 crore investment in its wholly owned subsidiary, ONGC Green Limited (OGL). The investment will be made through a rights issue of equity shares.

As of 12:10 PM on March 26, shares of Oil and Natural Gas Corporation share price were trading at ₹241.92, down 0.14% for the day, up 4.73% over the past month, but down 18.05% over the last six months.

Stake in Ayana Renewable Power

OGL will use the ₹3,300 crore to acquire 100% equity in Ayana Renewable Power Private Limited. The acquisition will be executed through ONGC NTPC Green Private Limited (ONGPL), a 50:50 joint venture between OGL and NTPC Green Energy Limited (NGEL).

Ayana Renewable Power has a portfolio of approximately 4.1 GW, including both operational and under-construction assets. These assets are located in states with strong renewable energy resources. The company’s off-takers include SECI, NTPC, GUVNL, and Indian Railways.

Investment in Mozambique LNG Project

The ONGC board also approved related party transactions worth ₹4,920 crore connected to its Mozambique LNG project. ONGC Videsh Ltd (OVL) will invest up to ₹1,500 crore in Beas Rovuma Energy Mozambique Ltd (BREML), which will be converted into redeemable preference shares. OVL holds a 60% stake in BREML.

Additionally, OVL Overseas IFSC Ltd (OOIL), a wholly owned subsidiary of OVL, will extend a senior loan of USD 379.3 million (approximately ₹3,270 crore) to Moz LNG1 Financing Company Ltd. ONGC has also provided a corporate guarantee of the same amount for this loan.

Conclusion

ONGC’s board decisions on March 25 include funding its renewable energy subsidiary and committing capital to its Mozambique LNG project. These approvals involve investments through both equity and loans, covering different parts of the company’s operations.

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