Indian Oil Accelerates Green Shift with ₹1,086 Crore Boost and LNG Diversification Strategy – EQ
In Short : Indian Oil Corporation will invest ₹1,086 crore in its subsidiary Terra Clean Ltd. to develop 4.3 GW of renewable energy capacity, expanding its total planned green portfolio to 5.3 GW. This move aligns with IOC’s clean energy goals. The company also signed a $1.3 billion LNG deal with Trafigura to diversify its energy sources.
In Detail : Indian Oil Corporation (IOC) has approved an equity investment of ₹1,086 crore in its renewable energy subsidiary, Terra Clean Ltd. The investment will support the development of 4.3 GW of renewable energy capacity. This initiative is part of IOC’s broader push toward clean energy and sustainability, aimed at reducing its carbon footprint and supporting India’s green goals.
This latest infusion of capital follows an earlier investment of ₹1,304 crore by IOC in Terra Clean to build 1 GW of renewable capacity. With the new allocation, the company’s total renewable energy plan now stands at 5.3 GW. The move is seen as a key step in diversifying IOC’s traditionally fossil fuel-heavy portfolio.
The strategy reflects Indian Oil’s long-term vision of aligning with global energy transition trends and national targets for increasing non-fossil fuel energy capacity. By boosting its renewable investments, the company aims to play a larger role in India’s clean energy ecosystem while maintaining profitability and competitiveness.
In the fourth quarter of the fiscal year, IOC reported a net profit of ₹7,265 crore, a 50% increase year-on-year. This performance was driven by higher marketing margins and inventory gains, even though gross refining margins slightly declined to $7.85 per barrel from $8.39 the previous year. The strong financials support the company’s ongoing investment in green energy.
In addition to the renewable push, IOC has entered into a five-year deal with global trader Trafigura to procure 2.5 million tonnes of liquefied natural gas (LNG). The agreement, valued at around $1.3 to $1.4 billion, includes 27 LNG cargoes and is scheduled to begin in the second half of this fiscal year. The pricing is linked to the Henry Hub index.
This LNG deal and renewable investment highlight IOC’s dual approach of supporting both energy security and sustainability. The company is positioning itself to adapt to future energy demands by balancing traditional hydrocarbon operations with strategic investments in clean energy sources.
