Indian State Refiner to Raise Funds for Energy Transition and Net Zero Objectives.
Bharat Petroleum has announced its plans to raise up to 180 billion rupees ($2.19 billion) through an equity share issue on a rights basis.
This move underscores India’s commitment to achieving its net zero-emissions targets. The specific details of the share issue, such as price, right entitlement, and timing, will be communicated separately following board approval, according to a filing with the stock exchange reports Reuters.
In a previous statement, Bharat Petroleum highlighted that the raised funds would be utilized to support their energy transition initiatives, as well as to achieve net zero emissions and enhance energy security objectives.
As part of the government’s efforts to facilitate the refiners’ energy transition projects, the Indian government plans to inject a significant amount of equity into three major state refiners, namely Bharat Petroleum, Indian Oil Corp, and Hindustan Petroleum Corp Ltd.
This injection of funds would be in exchange for the refiners’ commitment to fund their respective energy transition projects.
Sources familiar with the matter speaking to the news agency revealed that the three refiners are collectively targeting an investment of 3.5-4 trillion rupees to achieve their net zero-emissions goals by 2040, as reported by Reuters last week.
Indian Oil Corp, another major state refiner, has also decided to launch a rights issue and has approved doubling its authorized share capital to 300 billion rupees.
Additionally, the oil ministry has reportedly instructed Hindustan Petroleum to allocate preferential shares to the government, according to the Reuters report.
These developments indicate the government’s active involvement in promoting clean energy and sustainable practices within the oil and gas sector.