ONGC NTPC Green's Mega Deal: Acquiring 100% of Ayana Renewable

ONGC NTPC Green Buys Ayana Renewable Power for Rs 19,500 Crore
ONGC NTPC Green signed an acquisition deal for 100% equity of Ayana Renewable Power Private Limited on enterprise value of Rs 19,500 crore (USD 2.3 billion). The deal, subject to approvals from regulators and conditions precedent, is a historical deal in the renewable energy space in India.

Acquisition Agreement Details
The deal has been purchased by ONGC NTPC Green, 50:50 joint venture company of ONGC Green Limited (OGL) and NTPC Green Energy Limited (NGEL), from National Investment and Infrastructure Fund (NIIF), BII South Asia Renewables Limited, British International Investment Plc (BII), and Eversource Capital.

The transaction was made public through a filing of exchange by NTPC Green Energy, who informed ONGC NTPC Green's signing of a Share Purchase Agreement (SPA) with the existing investors for the purpose of making the purchase. 

Ayana's Renewable Energy Portfolio
Ayana Renewable Power is among India's most prominent renewable energy players with 4.1 GW operating and development assets under its belt. It also has another 1 GW pipeline in development. Most of its assets are located in high-renewable energy potential states and have long-term power purchase agreements with credit-worthy off-takers such as the Solar Energy Corporation of India (SECI), NTPC, Gujarat Urja Vikas Nigam Limited (GUVNL), and Indian Railways.

It was established in 2018 by British International Investment (BII). It was funded by NIIF and Eversource in 2019, which helped it venture into round-the-clock (RTC) schemes, solar, and wind schemes. NIIF and BII also invested additionally in 2021.

Strategic Significance of the Acquisition
The transaction is in the direction of NGEL's path to 60 GW of renewable energy capacity by the fiscal year 2032. The transaction also positions ONGC Green Limited on its path to maximize its contribution to India's clean energy sector, driving the nation towards a low-carbon economy earlier.

With this deal, ONGC NTPC Green is a strong contender in the Indian renewable space with access to Ayana's long pipeline and development opportunity. The deal will contribute to the nation's clean energy capability and further the overall sustainability mission of the government.

Next Steps
The transaction is conditional on obtaining necessary regulatory approvals and the satisfaction of conditions to the deal. It would be a turning point in India's efforts to increase its renewable energy capacity after it is executed.