State-run NTPC Green Energy (NGEL) on Monday said that it has signed a joint venture (JV) agreement with Indian Oil Corporation (IOCL) for setting up of renewable energy (RE) projects to meet round-the-clock power requirement of the state-run oil marketing company’s (OMCs) refineries.

NGEL is a subsidiary of the country’s largest power generator NTPC, which through NGEL, has set an ambitious target of building a renewable generation portfolio of 60 gigawatts (GW) over the next decade to aggressively pursue its green energy business.

The signing of this JV agreement between the two Maharatna companies will enable the power behemoth and India’s largest OMC to meet the government’s clean energy targets in their respective core businesses, NTPC said in a statement.

Last month, NTPC had completed the procedure of transferring its RE assets to NGEL. The Genco’s green energy arm has also announced plans to raise up to ₹9,000 crore to repay an outstanding debt liability as well as to raise fresh loans.

NTPC incorporated NGEL in April 2022 for consolidating its renewable energy (RE) businesses and aggressively pursuing its green/ sustainable energy venture.

The transactions comprised of transfer 15 RE assets, through a Business Transfer Agreement (BTA), and the transfer of 100 per cent equity shareholding of NTPC Renewable Energy (NREL), a wholly-owned subsidiary of NTPC, through a Share Purchase Agreement (SPA), executed on July 8, 2022, it added.