IOC plans Rs 1 lakh crore investment for 18 GW green energy by 2030

Indian Oil Corporation Ltd. (IOC) has outlined plans to invest around Rs 1 lakh crore to build an 18 GW green energy portfolio by 2030. The state-owned refiner aims to acquire up to 12 GW of renewable energy capacity and develop another 6 GW organically. Its green energy subsidiary, Terra Clean Ltd., is targeted for a public listing by 2027-28.

According to statements by IOC Chairman A S Sahney to the Economic Times (ET), the company is evaluating multiple opportunities to acquire renewable assets and plans to secure 10-12 GW through transactions over the next four to five years. He noted that this approach mirrors recent sector activity, including Oil and Natural Gas Corporation (ONGC)’s acquisition of Ayana Renewable Power last year.

Sahney said the current cost of developing 1 GW of renewable capacity is about Rs 5,000 crore, while acquisitions typically involve higher valuations. The total equity requirement for the 18 GW target is estimated at up to Rs 30,000 crore. IOC has stated that this can be managed within its existing capital expenditure plans. For the 2026-27 fiscal year alone, the company has earmarked capital expenditure of Rs 35,000 crore.

The shift towards green energy marks a major change in IOC’s future investment priorities. With its Rs 1 lakh crore refinery expansion programme set to conclude next fiscal year, a larger share of capital expenditure thereafter is expected to be directed towards renewables, petrochemicals, gas, and other non-refining businesses. The strategy is intended to address climate goals while also creating new and stable revenue streams.

At present, Terra Clean has board approval to develop 4 GW of renewable capacity. In addition, 2 GW is being developed through Indian Oil NTPC Green Energy Ltd., a joint venture with National Thermal Power Corporation (NTPC). Power from this project will be used entirely for IOC’s own operations.

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