New Delhi (06.05.2026): India's nine public sector energy companies invested just 10 per cent of their investments towards clean energy in FY25, while a major chunk went into fossil fuels, according to an analysis.
These state-owned firms invested a total of Rs 2.6 trillion in FY25, of which Rs 2.3 trillion was directed towards conventional fuel, it said, and emphasised that redirecting these investments towards clean energy could reduce greenhouse gas emissions and strengthen the country's energy security.
Also, it said that eight of these nine PSUs account for about 11 percent of India's greenhouse gas emissions on a Scope 1 basis — direct emissions from their own operations.
The analysis, 'Mapping India's Energy Transition: A Data Dive into the Strategic Role of State-Owned Enterprises in the Energy Sector', was carried out by the Indian Institute of Sustainable Development (IISD) and published on Tuesday.
The PSUs that have been examined are: Coal India Limited (CIL), NTPC Limited (NTPC), NLC India Limited (NLCIL), Oil and Natural Gas Corporation Limited (ONGC), Oil India Limited (OIL), Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL), GAIL (India) Limited (GAIL), and NHPC Limited (NHPC).
"Together, these enterprises manage India's most significant fossil fuel assets while also developing some of the country's largest renewable energy projects... Their dual portfolios give them a uniquely important role in shaping both India's current emissions trajectory and its clean energy future," said the analysis.
It noted that these companies are also closely interdependent — coal mined by CIL is burned by NTPC, and grid electricity from NTPC reaches government-owned refineries.
The analysis highlighted that if these nine PSUs redirect their investments towards clean energy, they could not only reduce greenhouse gas emissions but also strengthen long-term energy security.
In a statement, Deepak Sharma, a consultant at the IISD, said, "India's public ownership of the energy system gives it a rare strategic advantage in managing this carbon interdependence."
"With aligned mandates, common ownership, and coordinated planning, PSUs can move together — redirecting capital, managing risks, and accelerating emissions reductions at a system level," he added.
