Competition Comm clears ONGC-NTPC Green’s proposal to acquire Ayana for ₹19,500 crore

The Competition Commission of India on Tuesday (March 11) cleared ONGC-NTPC Green’s proposal to acquire renewable energy firm Ayana for ₹19,500 crore ($2.3 billion). ONGC-NTPC Green Pvt Ltd (ONGPL), a 50:50 joint venture between ONGC Green (OGL) and NTPC Green Energy Ltd (NGEL).”The proposed combination involves the acquisition of 100 per cent equity share capital of the target (Ayana Renewable Power) by the acquirer (ONGC NTPC Green), the regulator said in a release. ONGC Green and NTPC Green Energy are wholly-owned subsidiaries of Oil and Natural Gas Corporation Ltd (ONGC) and NTPC Ltd, respectively.
“CCI approves the proposed combination involving the acquisition of Ayana Renewable Power Pvt Ltd by ONGC NTPC Green Pvt Ltd,” the Competition Commission of India (CCI) said in a post on X.
Last month, ONGPL said it signed a share purchase agreement to acquire a 100 per cent equity stake in Ayana Renewable Power Pvt Ltd (Ayana). The agreement was signed with Ayana’s current shareholders National Investment and Infrastructure Fund (NIIF) (51%), British International Investment Plc (BII) and its subsidiaries (32%), and Eversource Capital (17%).. The transaction is valued at $2.3 billion, it added.Also Read: ONGC’s OPaL exits from Dahej SEZ, to operate as domestic tariff area unit

This is the second biggest deal in the renewable energy space. In October 2021, Adani Green Energy (AGEL) in October 2021 acquired SB Energy India from SoftBank Group Corp (SBG) and Bharti Group in an all-cash deal worth $ 3.5 billion.Ayana, a leading renewable energy platform, has about 4.1 GW of operational and under-construction assets strategically located across resource-rich states. It has around 3 GW under development, comprising solar, wind, hybrid & and round-the-clock (RTC) renewable assets with firm power purchase agreements. Of this, the group expects to commission a 300-MW solar power asset and a 140-MW wind power asset in FY25 and the balance through FY26 and FY27.

OGL, a wholly-owned subsidiary of ONGC, focuses on solar, wind, and energy storage solutions, actively pursuing both greenfield and brownfield acquisitions to accelerate India’s renewable transition.

NGEL, a subsidiary of NTPC Ltd, leads NTPC’s renewable energy expansion, targeting 60 GW RE capacity by 2032, and NIIF is India’s sovereign-linked asset manager, with $ 4.4 billion in equity capital commitments.

Also Read: ONGC Q3 Results: Net profit misses estimates, EBITDA and margins up; Declares dividend

BII is the UK’s development finance institution, supporting sustainable economic growth in emerging markets, while Eversource Capital manages one of the largest climate funds in emerging markets, focusing on energy transition, industrial decarbonisation, and urban sustainability.