Heading: Bharat Petroleum Approves Equity Share Issue to Achieve Net-Zero Emissions Goals
Bharat Petroleum, a state-owned oil marketing company in India, has announced its approval to raise up to 180 billion rupees ($2.19 billion) through an issue of equity shares on a rights basis. This move highlights India’s commitment to achieving net-zero emissions goals. The company has stated that the details of the issue, including the price, right entitlement, and timing, will be communicated separately after board approval.
Heading: Funding Energy Transition and Net-Zero Objectives
Last week, Bharat Petroleum revealed that the funds raised through this equity share issue would be utilized to achieve energy transition, net-zero, and energy security objectives. This aligns with the Indian government’s plan to inject significant equity into its three major state refiners, including Bharat Petroleum, Indian Oil Corp., and Hindustan Petroleum Corp. Ltd. In return for funding these refiners’ energy transition projects.
Heading: Ambitious Investment Plans for Net-Zero Emissions
The three state refiners, collectively, have set a target to invest between 3.5 trillion rupees to 4 trillion rupees in order to achieve their net-zero emissions goals by 2040. These investments will focus on implementing sustainable and environmentally-friendly practices throughout their operations. With this substantial financial backing, Bharat Petroleum and its counterparts aim to significantly reduce their carbon footprint and contribute to India’s overall efforts in combating climate change.
Heading: Indian Oil Corp. Also Plans Rights Issue
In addition to Bharat Petroleum, Indian Oil Corp., another major state refiner in India, is also planning to launch a rights issue. The company recently approved doubling its authorized share capital to 300 billion rupees. This decision further emphasizes the commitment of Indian oil companies towards transitioning to cleaner energy sources and reducing their environmental impact.
Heading: Government’s Role in Energy Transition
The Indian government has been actively involved in supporting the energy transition efforts of state refiners. As part of this, the oil ministry has requested Hindustan Petroleum to make a preferential share allotment to the government. This move demonstrates the government’s commitment to driving sustainable practices within the oil and gas sector and promoting the use of cleaner energy sources.
Heading: Conclusion
Bharat Petroleum’s approval for an equity share issue to raise funds for achieving net-zero emissions goals is a significant step towards India’s commitment to combat climate change. With the support of the Indian government and their ambitious investment plans, Bharat Petroleum and other state refiners are poised to make substantial progress in transitioning to cleaner energy sources and reducing their carbon footprint. These initiatives not only contribute to India’s sustainable development goals but also set an example for other countries and industries to follow.