President of India-Backed Oil Exploration Company Signs Joint Venture Agreement with Rajya Vidyut Utpadan Nigam Ltd (RVUNL)

Oil India Limited (OIL), a Maharatna Public Sector Undertaking and Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL), a company under the Government of Rajasthan, have signed a Joint Venture Agreement to create a new company. This joint venture will focus on developing 1.2 GW of renewable energy projects in Rajasthan. These projects will consist of 1000 MW of solar and 200 MW of wind power, located within RVUNL's Renewable Energy Park.

The new company will combine the strengths of both partners: Oil India Limited's expertise in the energy sector and Rajasthan Rajya Vidyut Utpadan Nigam Limited's experience in developing power projects. The collaboration aims to develop a range of renewable energy initiatives, including solar, wind and green hydrogen. The clean power generated from these projects will be supplied to Distribution Companies and other commercial clients.

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This partnership is part of Oil India Limited's broader strategy to support India's transition to green energy and achieve its goal of net-zero carbon emissions by 2040. To help with this, Oil India Limited has also established a subsidiary called Oil Green Energy Limited. This new subsidiary will manage the company's clean energy initiatives, including renewable energy projects, compressed biogas and green hydrogen.

About the Company

Oil India Ltd (OIL) is a fully integrated National Oil Company, actively involved in the exploration, development and production of crude oil and natural gas. Beyond upstream activities, the company is also engaged in the production of Liquefied Petroleum Gas (LPG), the transportation of crude oil and natural gas and has ventured into the generation of renewable energy. Additionally, OIL provides a range of Exploration & Production (E&P) related services for oil blocks, solidifying its comprehensive presence across the hydrocarbon value chain.

The stock’s 52-week high is Rs 604.90 per share and its 52-week low is Rs 322.15 per share. The company has a market cap of over Rs 66,000 crore and has been maintaining a healthy dividend payout of 26.1 per cent. The stock has a PE of 11x whereas the sectoral PE is 12x with ROE and ROCE of 13 per cent each. The President of India owns the majority of the stake, i.e., 56.66 per cent. The stock is up by 28 per cent from its 52-week low of Rs 322.15 per share.

Disclaimer: The article is for informational purposes only and not investment advice.