The government is all set to establish two new SPVs to set up large sized solar and wind energy projects in India and abroad.

With this intention, an MoU has been signed between the Ministry of Petroleum & Natural Gas and the Ministry of New & Renewable Energy.

In the first SPV, Oil & Natural Gas Corp (ONGC), will be the lead partner along with Oil India (OIL), GAIL, Engineers India (EIL), Solar Energy Corp of India (SECI), and Indian Renewable Energy Development Agency (IREDA). This SPV will undertake big electricity grid-connected projects.

The second SPV, in which Indian Oil Corp (IOC), will be the lead partner, will look at developing off-grid projects using advanced technologies. This SPV will include Bharat Petroleum Corp (BPCL), Hindustan Petroleum Corp (HPCL) besides SECI and IREDA.

These SPVs will function independently like commercial organisations, while utilising various promotional schemes of the Ministry of New & Renewable Energy and the state governments for the purpose.

The government has appointed Engineers India (EIL), to prepare the feasibility report for assessment of overall economics of the projects, development of business models based on expected returns, and risk analysis etc for the two SPVs. The feasibility reports will be prepared within three months and the two SPVs will be incorporated immediately thereafter, based on the feasibility reports.