In a massive shift toward sustainable energy, Indian Oil Corporation (IOC) has announced plans to invest approximately ₹1 lakh crore (around $12 billion) to build a powerful 18 gigawatt (GW) green energy portfolio by 2030. The state-run energy giant is looking to transition from traditional refining to becoming a major player in the renewable sector.
The strategy involves a mix of building new projects from scratch and acquiring existing green assets to reach its ambitious target.
Building a Massive Green Portfolio
The chairman of Indian Oil, A S Sahney, detailed the company’s roadmap, which involves acquiring 10-12 GW of existing renewable assets over the next five years. To complement these acquisitions, the company plans to build another 6 GW through its own “organic” development efforts.
One key piece of this puzzle is a joint venture with NTPC Green Energy Ltd, which is already working on a 2 GW project. The power generated from this specific partnership will be used entirely by Indian Oil to green its own industrial operations.
Taking the Green Business Public
As part of its long-term financial strategy, Indian Oil plans to take its dedicated renewable energy subsidiary, Terra Clean Ltd, public.
“Terra Clean Ltd is slated for a public listing by 2027-28, by which time its renewable portfolio is expected to reach meaningful scale,” Chairman A S Sahney told ET.
By the time of the IPO, the company expects its green business to have grown large enough to attract significant interest from global and domestic investors.
Shifting Focus from Oil to Renewables
For years, Indian Oil’s spending has been dominated by expanding its massive refineries. However, with that expansion program nearing completion, the company is shifting its financial muscle.
For the 2026-27 fiscal year, the company has earmarked ₹35,000 crore for capital expenditure, with a growing portion of that money moving toward renewables, petrochemicals, and green hydrogen.
“We are on the lookout and evaluating certain cases. Our target is to take 10-12 GW in the next 4-5 years,” Sahney added, confirming that the company is actively hunting for high-quality green energy assets to buy.
This ₹1 lakh crore bet is not just about meeting climate goals; it’s a strategic move to build “new, durable revenue streams” that will keep the company profitable as the world moves away from fossil fuels.
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