ONGC, 4 others vie for Fortum projects

The five bidders were shortlisted from 11 non-binding offers that were submitted

- Utpal Bhaskar

Oil and Natural Gas Corp. Ltd (ONGC) is in the fray for Finnish state-run power utility Fortum Oyj’s Indian solar projects totalling 185 megawatts (MW), two people familiar with the matter said, adding that the deal may have an equity value of around $130 million.

Others in the race include Malaysia’s state-run oil and gas company, Petronas unit Gentari Sdn Bhd, Singapore’s Sembcorp Industries Ltd, Edelweiss Infrastructure Yield Plus Fund’s Sekura Energy Ltd, and private equity firm Actis Llp.

The five bidders were shortlisted from 11 non-binding offers that were submitted, the people said on condition of anonymity.

Kotak Investment Banking is managing the transaction, which is estimated at an enterprise value of around $200 million. The deal has seen significant interest since buyers of power from these projects having AA+ rating include state-run entities such as Solar Energy Corp. of India Ltd, NTPC Ltd and NTPC Vidyut Vyapar Nigam Ltd.

Global oil companies such as energy giant Shell Plc, TotalEnergies, Thailand’s PTT Group, and now Petronas have already established a presence in India’s green energy sector at a time of disruption in the conventional hydrocarbon space. ONGC, on its part, plans to spend ₹1 trillion on green initiatives by 2030 to help achieve net-zero emissions by 2038. ONGC has a renewable energy