On Thursday, Oil India’s (OIL) board approved the formation of a 50:50 joint venture with Rajasthan Rajya Vidyut Utpadan Nigam Ltd (RRVUNL) to generate clean power in the state, according to the company’s regulatory filing.
Assets shift to subsidiary
In another major decision, the Oil India board also approved the transfer of its renewable energy assets to its wholly-owned subsidiary OIL Green Energy Ltd.
In January this year, the company set up the subsidiary for its renewable energy businesses. The new entity’s line of business involves energy generation through non-conventional or renewable sources, including wind, hydro, solar, tidal, geothermal, biomass, steam, wave, waste and hybrid.
According to the company’s website, the state-run energy major has 188.1 MW of installed renewable energy capacity, including 174.1 MW of wind and 14 MW of solar projects, spread across Rajasthan, Madhya Pradesh, Gujarat and Assam. The company is diversifying its operations in line with the national target of achieving net zero carbon emissions by 2070.
Last month, OIL and Bharat Petroleum Corp. (BPCL) formalized an agreement to establish a joint venture which would create a gas distribution network in Arunachal Pradesh, including compressed natural gas (CNG) stations and the provision of piped natural gas (PNG) to domestic, commercial, and industrial consumers in the state.
In his message to the shareholders in the annual report for FY25, Ranjit Rath, chairman and managing director of OIL, noted that the company’s long-term strategy includes accelerating clean and green energy transition with investments in renewables, green hydrogen, biofuels and compressed biogas.
For the first quarter of FY26, Oil India reported a consolidated net profit of ₹2,046.51 crore, 1.5% higher than ₹2,016.30 crore during the corresponding quarter of the previous fiscal. Its total income in the June quarter was ₹9,005.62 crore, 6% lower than ₹9,581.78 crore in the year-ago period.
