Indian Oil Corporation Ltd. makes a corporate announcement

The Rs 755 crore, 100 MW wind project is strategically aligned with IOCL’s Net Zero 2046 roadmap, but it is one component of a broader decarisation programme rather than a standalone solution. The project adds renewable electricity capacity and is consistent with IOCL’s stated focus on renewable power, including meeting the electricity requirements of future refinery expansions through renewable energy. ^{[1] [2]}

IOCL’s roadmap targets net-zero operational emissions by 2046, covering Scope 1 and Scope 2 emissions. Its identified pathways also include energy efficiency, fuel substitution, green hydrogen, compressed biogas, carbon capture, tree plantation and carbon credits. ^[3] The Annual Report states that the company estimates a transition investment requirement of approximately Rs 2.5 lakh crore, placing the Rs 755 crore project in the context of a much larger, multi-year capital programme. ^[3]

Current renewable capacity

IOCL’s latest Integrated Annual Report, for FY2025-26, reports total renewable energy capacity of 258.06 MW as of 31 March 2026, comprising:

• Wind: 167.60 MW
• Solar: 90.46 MW ^[4]

The Rs 755 crore project is reported as a 100 MW turnkey order, including turbine supply, EPC, project execution and post-commissioning O&M; it should therefore not automatically be treated as Rs 755 crore of already capitalised project cost. ^[1] Nor should the 100 MW be added to the 258.06 MW current installed base until commissioning is reported. If commissioned in full, it would represent a derived addition of approximately 38.75% to the FY2025-26 renewable portfolio, taking the portfolio to a potential 358.06 MW.

The Rs 755 crore order implies Rs 7.55 crore per MW, calculated as Rs 755 crore divided by 100 MW. That is approximately 4.56 times the closest disclosed historical benchmark for IOCL’s renewable portfolio, or about 356% higher.

• New wind project: Rs 7.55 crore/MW, based on a 100 MW turnkey order valued at Rs 755 crore. The contract includes turbine supply, EPC, commissioning and 10 years of O&M, so this is an all-in contract value, not pure installed-capex. ^[8]
• Historical benchmark: IOCL reported Rs 409.5 crore of investment in renewables and greening efforts against 247 MW of installed renewable capacity in FY2023-24, implying approximately Rs 1.66 crore/MW. This is only a proxy because the numerator includes broader greening expenditure and is not stated as project-only capex. ^[9]

The comparison therefore signals a materially higher apparent cost, but it is not like-for-like: the new order is wind-specific, turnkey and includes a decade of O&M, whereas the historical figure covers a broader renewable portfolio and associated greening initiatives.

Green-capex classification: the project is economically aligned with IOCL’s green/energy-transition investments, but the order has not been separately identified as a line item under a named green-capex budget. IOCL’s FY2025-26 BRSR reports that 2.58% of total capex was directed toward environmental and social improvements, including renewable energy, EV charging and biofuel development; it does not map this specific Terra Clean wind order to that percentage. ^[10] Thus, the defensible conclusion is “green in purpose, but not explicitly tagged at order level.”