In response to rising crude oil prices, Oil India seeks to invest Rs 25,000 crore in renewable energy by 2040

Oil India's Chairman and Managing Director (CMD) Ranjit Rath declared that the company plans to invest Rs 25,000 crore in renewable energy by 2040 in an effort to combat rising crude oil costs. Read more : During the first half of 2023, India’s imports of solar panels from China significantly decreased by 76%: Report Oil India's investment of Rs 25,000 crore will go towards a variety of projects, including zero-flaring initiatives, compressed biogas, solar energy, geothermal energy, and green hydrogen. Additionally, switching from diesel-fired engines to petrol engines will be a part of this expenditure.

Company aims to spend Rs 8,000 crore on 2G ethanol

Additionally, the business plans to spend Rs 8,000 crore on 2G ethanol alone out of the whole lump sum. On September 14, at 1:40 p.m., Oil India shares were trading about 1.2 percent higher at Rs 277 per share. Recently, crude oil prices have increased, which the CMD considers to be a "welcome" trend. He stressed that these price hikes are directly related to the price of crude oil on the world market and are crucial in motivating "upstream players to invest more" in the industry. Being a major participant in the sector, Oil India, according to Rath, is well-equipped to manage such swings and maintain its production targets.

Company reported  declining output at 8-10% rate

Oil India's current operations are mainly concentrated on mature fields, where output is declining at an 8–10% rate. In spite of this, the business claimed a net growth in output of 5.5% with a gross growth of 15% last year. Rath credited the company's "variety of interventions" for this result. Future goals set by Oil India include a goal to produce 4 million metric tonnes (MMT) of crude oil and 5 billion cubic metres (BCM) of natural gas by FY27. Rath also disclosed intentions to dig about 60 wells this fiscal year in Assam's and Arunachal's primary production regions.

Focus on Renewable Energy

The focus on renewable energy is one of Oil India's future initiatives that deserve special attention. The company's intention to invest Rs 25,000 crore in renewable energy by 2040 was announced by the CMD. "We are currently looking to significantly expand our gas portfolio," according to Rath. Rath also emphasised Oil India's initiatives to speed up the net-zero emissions schedule, with the goal of achieving it by 2038, two years sooner than the original objective of 2040. In particular, he praised the formula's provisions for challenging fields, which allow for a price band + 20%. He voiced confidence in the new petrol price formula. We are currently looking to significantly expand our gas portfolio, according to Rath. OTT India updates you with the latest news, The Country’s no.1 digital news platform OTT India, Keeps you updated with national, and international news from all around the world. For more such updates, download the OTT India app on your Android and IOS device.