Indian Oil Corporation Ltd. makes a corporate announcement

The project capacity is 100 MW. Inox Wind’s order is a turnkey wind project for Indian Oil Corporation, with turbine supply, EPC, commissioning and 10-year O&M services. The order was subsequently clarified as being from Terra Clean Limited, an IOCL subsidiary, rather than directly from IOCL. ^{[1] [2]}

Contribution to IOCL’s renewable-energy targets:

• IOCL’s FY25 investor presentation reported an existing renewable-energy portfolio of 252.1 MW and a long-term target of 31 GW by 2030. ^[3]
• The 100 MW order equals 39.67% of the FY25 baseline portfolio, calculated as 100 MW ÷ 252.1 MW. This is a comparison with the existing portfolio, not a reported FY25 addition.
• Against the 31 GW target, the order represents approximately 0.32%, calculated as 100 MW ÷ 31,000 MW.
• Separately, IOCL had approved 5.3 GW of renewable capacity through Terra Clean—1 GW previously approved plus an additional 4.3 GW approved in April 2025. ^[4] The 100 MW order would equal approximately 1.89% of that planned Terra Clean capacity, but the disclosures do not establish that this project is specifically included within the 5.3 GW programme.

Key timing point: the order was announced in September 2026, after FY25 ended. Therefore, it cannot be counted as an FY25 actual capacity addition. It is better viewed as a subsequent project supporting IOCL’s longer-term renewable build-out; the cited FY25 materials state a baseline and long-term targets, but do not provide a separate FY25 MW-addition target against which this order can be measured.

The order’s total contract value is approximately Rs 755 crore for a 100 MW turnkey wind project, including turbine supply, EPC, project execution and 10 years of post-commissioning O&M services ^[5].

For IOCL, the order should be viewed as renewable-energy capital deployment, rather than refinery, marketing, petrochemicals, pipelines, gas, R&D or E&P capex. However, it was placed by Terra Clean Ltd., IOCL’s wholly owned subsidiary, not directly by IOCL ^[6]. IOCL’s FY27 capex presentation reports an approved total capex target of Rs 32,700 crore, but does not separately identify this order or provide a renewable-energy sub-budget; the disclosed segment table includes an aggregate “Others” category without linking the Inox Wind contract to it ^[7].

Thus, the defensible classification is: renewable-energy expenditure within the broader FY27 capex programme, with no separately disclosed project-level budget head or confirmed allocation. The Rs 755 crore contract value equates to about 2.31% of IOCL’s Rs 32,700 crore FY27 capex target, calculated from the reported figures, but this is a scale comparison—not evidence that the entire contract value will be spent in FY27.

_Scope note: this comparison also included Indian Oil Corporation Ltd. (IOC), which the answer above does not cover. Ask about any of them for a full side-by-side._

The order implies a turnkey cost of Rs 7.55 Crores per MW, but a premium or discount versus IOCL’s earlier renewable awards cannot be established because prior award-wise project values are not reported. The order is described as a repeat order and includes turbine supply, EPC, commissioning and 10-year O&M, so Rs 7.55 Crores/MW is an all-in contract intensity—not pure turbine capex or levelised electricity cost. ^{[1] [8]}

Cost comparison

The FY26 annual report gives only portfolio-level data: 258.06 MW of renewable capacity, comprising 167.60 MW wind and 90.46 MW solar, with 371.40 GWh of generation. It does not provide historical project-award capex against which the Rs 7.55 Crores/MW can be benchmarked. ^[9]

Expected captive-power impact

The direction of impact should be a gradual shift from fuel-linked or purchased-power costs toward fixed renewable-capacity costs plus O&M, but the all-in cost per unit of captive power cannot yet be quantified. The order itself does not disclose the generation tariff, capacity factor, financing cost, wheeling and transmission charges, banking or balancing costs, or the inter-company transfer price to IOCL’s refineries.

• Near term: the project should add capitalised investment and, once operational, depreciation, financing and O&M costs. It should not reduce captive power cost immediately before commissioning.
• Steady state: if the electricity is allocated to refinery or other captive consumption, wind generation could reduce exposure to fossil-fuel prices and grid-power purchases. The net saving will depend on delivered renewable power cost, not the Rs 7.55 Crores/MW headline alone.
• Scale: IOCL has disclosed a 650 MW round-the-clock renewable power requirement for refinery expansion projects ^[10]. The 100 MW order equals 15.38% of that requirement on a capacity basis, derived, but it should not be assumed to fulfil 15.38% of refinery captive demand: the 650 MW programme is being progressed through IndianOil NTPC Green Energy, whereas this order was clarified as a Terra Clean contract. ^{[10] [2]}
• Overall implication: the project is more clearly a decarbonisation and long-term power-cost-hedging initiative than a demonstrably cheaper power source at this stage. A firm reduction in captive power cost requires the eventual renewable tariff, generation profile and delivery structure.