Government-owned Oil India Ltd has partnered with Rajasthan's state-run power producer Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL) to generate renewable energy in Rajasthan. Oil India's board has approved the formation of a 50:50 joint venture with RRVUNL to generate clean power in the state, according to the company's regulatory filing. The announcement adds to the growing list of PSUs collaborating to expand renewable energy, notably those in the energy sector. Progress has been mixed at best, with most of these MoUs and JVs making very slow progress to date.

Asset Transfer to Subsidiary

The Oil India board has made another major decision by approving the transfer of Oil India's renewable energy assets to its wholly-owned subsidiary, OIL Green Energy Ltd. Oil India has an installed renewable energy capacity of over 188 MW, comprising approximately 174 MW of wind and 14 MW of solar projects, according to the company's website. The operations are spread across Rajasthan, Madhya Pradesh, Gujarat, and Assam.

The company established its subsidiary for renewable energy businesses in January of this year. The new entity is tasked with generating business through energy production from non-conventional or renewable sources, including wind, hydro, solar, tidal, geothermal, biomass, steam, wave, waste, and hybrid.

Strategic Energy Partnerships

Last month, OIL and Bharat Petroleum Corporation (BPCL) formalised an agreement to establish a joint venture which would create a gas distribution network in Arunachal Pradesh, including compressed natural gas (CNG) stations and the provision of piped natural gas (PNG) to domestic, commercial, and industrial consumers in the state. In his message to shareholders in the FY25 annual report, Oil India Chairman and Managing Director Ranjit Rath highlighted that the company's long-term roadmap is centred on accelerating the clean and green energy transition.

This will be achieved through increased investments in renewables, green hydrogen, biofuels, and compressed biogas.

Financial Performance

For the first quarter of FY26, Oil India posted a consolidated net profit of INR 2,046.51 crore, marking a 1.5 percent rise from INR 2,016.30 crore in the same quarter last year. The company's total income for the June quarter stood at INR 9,005.62 crore, which is 6 percent lower than the INR 9,581.78 crore reported in the corresponding period of the previous year.

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