NLC India, IOCL JV to Build Renewable Projects in Tamil Nadu

For IOCL, the JV fits into its target of 1 GW of renewable capacity by 2028. India’s largest state-run refiner has been adding non-fuel revenue streams. The Tamil Nadu projects could feed into IOCL’s own captive power needs or sell into the grid under long-term power purchase agreements.

Tamil Nadu Generation and Distribution Corp is one of the more active renewable offtake buyers in the state, though payment cycles have lagged in the past. The JV’s structure has not been finalised. Neither company disclosed an equity split, capacity target, or timeline.

Motupalli flagged green hydrogen and battery storage as future technologies the partnership would explore. Storage is a critical piece of the puzzle. Tamil Nadu’s wind generation peaks at night, when demand is low. Without storage, any large wind build-out would face curtailment.

The MoU signals a broader trend of state-owned energy companies pooling resources to meet renewable purchase obligations. NLCIL and IOCL have complementary strengths: one brings land and project know-how, the other brings capital and fuel-retail infrastructure. The practical challenge will be navigating state utility payment terms and grid connectivity rights, which have been sticking points for earlier projects in Tamil Nadu.