Oil companies have been scurrying the equity market to meet expenses of energy transition they have set for themselves.

NEW DELHI: Oil companies have been scurrying the equity market to meet expenses of energy transition they have set for themselves. Recently, the board of state-run Bharat Petroleum Corporation (BPCL) approved a rights issue for raising up to Rs 18,000 crore, and other oil companies like Indian Oil Corporation Limited (IOCL) and Hindustan Petroleum Corporation Limited (HPCL) are likely to follow suit.As per the reports, the government directed IOCL and BPCL to launch rights issues, and HPCL to make a preferential share allotment to the government. And the companies together are likely to invest Rs 3.5-4 lakh crore to achieve their net zero-emissions goals by 2040. To achieve the emission goal, a company will need a balance between the quantum of greenhouse gases it places into the atmosphere and the amount it takes out.Last week BPCL said that the funds will be used to achieve energy transition, net zero and energy security objectives. The company has set up short-term and long-term goals to achieve the net zero target by 2040.

It targets to reach 1 gigawatt (GW) of renewables by 2025 and 10 GW by 2040. Besides, the company also signed a memorandum of understanding (MoU) with the Rajasthan government to set up a 1 GW renewable energy (RE) power plant in the state.