Ministry of New & Renewable Energy (MNRE) and Ministry of Petroleum & Natural Gas (MoP&NG) have signed a Memorandum of Understanding to enhance energy security along with clean energy development through investments in Solar, Wind and other renewable energy projects.
Two Special Purpose Vehicles (SPVs) are proposed to be set up for promoting the deployment of technologies to supplement conventional fossil fuel based power generation that will give boost to the development of large scale grid connected renewable energy projects and implementing off-grid applications. The SPVs will be able to leverage the strength of oil and gas companies for promoting renewable energy projects. The SPVs would function independently like commercial organisations, while utilising various promotional schemes of MNRE and State Governments for the purpose.
The first SPV is for installation of large scale grid connected power generation plants based on renewable energy. Oil and Natural Gas Corporation (ONGC) will be the lead partner in this SPV, along with equity participation from Oil India Limited (OIL), GAIL (India) Limited (GAIL) and Engineers India Limited (EIL) and also the PSUs under MNRE viz Solar Energy Corporation of India (SECI) & Indian Renewable Energy Development Agency (IREDA).
The second SPV is for setting up renewable energy off-grid projects using advanced technologies and market based business solutions for promoting access to the energy deficient population. Indian Oil Corporation Limited (IOCL) will be the lead partner in the second SPV, along with equity from Bharat Petroleum Corporation Ltd (BPCL) & Hindustan Petroleum Corporation Limited (HPCL) and also represented by SECI and IREDA.