A joint venture between India's state-run energy companies NTPC Ltd and ONGC Ltd is nearing an agreement to acquire Ayana Renewable Power, a clean energy platform with significant renewable energy assets. The deal, valued between $700 million and $750 million, is set to position the combined entity as a major player in India’s growing green energy sector.

According to media reports, ONGC Green and NTPC Green – the renewables arms of the two oil and gas giants – are expected to finalize the acquisition within the next couple of weeks. This acquisition would value Ayana Renewables Power at between $1.7 billion and $1.8 billion. Ayana Renewable Power, which focuses on solar, wind, and hybrid power, is primarily owned by the National Investment & Infrastructure Fund (NIIF), with minority stakes held by British International Investment and Eversource Capital Group.

Founded in 2017, Ayana has established itself as a prominent renewable energy player in India, with around 5 gigawatts (GW) of projects in development and management across the country. The company has set an ambitious target of building a 10-GW portfolio by 2025. The deal with NTPC and ONGC’s renewables arms will give the state-backed companies a significant boost as they expand their clean energy footprint in one of the world’s largest and fastest-growing renewable energy markets.

This acquisition is the part of a broader trend in India, where both public and private sector players are ramping up investments in renewable energy to meet the country's ambitious climate goals. India's government aims to achieve net-zero emissions by 2070, and renewable energy is a central part of this strategy. As the country looks to reduce its reliance on fossil fuels, investments in solar, wind, and hybrid power projects are seen as crucial for the energy transition.

Earlier reports indicated that JSW Energy Ltd was also in the running to acquire Ayana, making the competition for the platform fierce. However, it appears that ONGC and NTPC have gained the upper hand, thanks to their strong backing from the Indian government and their growing commitment to the renewable energy sector.

The potential deal between ONGC and NTPC signals a strong push toward cleaner energy sources in India, further solidifying the nation’s role in the global renewable energy transition. With their combined expertise and resources, the two companies are well-positioned to help India meet its renewable energy targets and reduce its carbon footprint in the years to follow.