A joint venture between NTPC Green Energy and ONGC Green Energy is the highest bidder for Ayana Renewable Power, having made a bid of roughly $650 million.

The joint venture outbid JSW Energy for the renewable energy company supported by the National Investment and Infrastructure Fund, a quasi-sovereign wealth fund.

Owned by the British International Investment Fund, Green Growth Equity Fund, and NIIF, Ayana Renewable Power runs 1,600 megawatt solar and wind plants in India and has another 2,500 megawatts in such projects under construction.

After due diligence, NTPC Green Energy and ONGC Green Energy have jointly decided to acquire a 100% stake in Ayana Renewable Power through a joint venture company.

According to the source, NTPC Green Energy and ONGC Green Energy agreed to form an equal joint venture in February of this year.

India’s major power companies have made promises to increase their green energy capacity and are placing a large bet on renewable energy. The Indian government has committed to lowering carbon emissions by 2030 by adding 500 gigawatts of clean energy.

The state-owned power giant NTPC’s subsidiary, NTPC Green Energy, is aiming for a valuation of up to $10.8 billion in its IPO next week, which is expected to be the third-largest IPO in India this year.

It intends to use the money raised from the sale of all of its shares in the initial public offering (IPO), which will be offered for bids from November 19 to 22, to pay off the debt owed by its subsidiary, NTPC Renewable Energy.

It is anticipated that ONGC Green Energy, a division of the state-owned Oil and Natural Corp (ONGC), will go public during the current fiscal year.

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