The Government has decided to set up two special purpose vehicles (SPVs), headed by ONGC and Indian Oil Corporation (IOC), to set up renewable projects.
Currently, companies are doing it individually. Now, they can come together and set up large projects. A large population in rural areas that now uses unhealthy bio mass would be benefited, said Petroleum Secretary Vivek Rae.
Rae said that feasibility studies would take three months and by August 15, the companies would be incorporated.
The first SPV is for installation of large scale grid connected power generation plants based on renewable energy.
Lead partner ONGC will be the lead partner in this SPV, along with equity participation from Oil India Ltd (OIL), GAIL (India) and Engineers India Ltd (EIL) and also other the companies under MNRE such as Solar Energy Corporation of India (SECI) and Indian Renewable Energy Development Agency (IREDA).
The second SPV is for setting up renewable energy off-grid projects using advanced technologies and market based business solutions for promoting access to the energy deficient population.
IOC will be the lead partner in the second SPV, along with equity from Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd and also represented by SECI and IREDA.