Terra Clean Ltd. (IOCL) Issues Pan-India EoI for Group Captive Renewable Energy: A Strategic Manual for C&I Decarbonization

Terra Clean Ltd. (TeCL), a wholly owned subsidiary of the Maharatna Public Sector Undertaking Indian Oil Corporation Ltd. (IOCL), has formally invited Expressions of Interest (EoI) from Commercial and Industrial (C&I) stakeholders for long-term renewable energy (RE) procurement. Operating under the Group Captive Open Access (GCOA) framework, this initiative facilitates a pan-India transition to green power for high-tension (HT) consumers. As of February 2026, navigating these regulatory exemptions has evolved into a critical survival skill for CFOs seeking to hedge against rising grid tariffs and minimize the landed cost of power by bypassing non-bypassable surcharges.

Terra Clean and IOCL’s Strategic Renewable Roadmap

TeCL serves as the specialized green energy vehicle for IOCL, leveraging the parent corporation’s institutional balance sheet and project execution infrastructure. The entity is central to IOCL’s stated objective of achieving 31 GW of RE capacity by 2030 and reaching net-zero operational emissions by 2046.

Capital Allocation and Sector Milestones:

• Incremental Investment: IOCL has authorized an additional equity infusion of ₹10.86 billion to develop 4.3 GW of RE capacity.
• Foundational Funding: This builds upon the initial ₹13.03 billion equity commitment earmarked for TeCL’s primary 1 GW venture, bringing near-term targets to 5.3 GW.
• National Context (Feb 2026): India’s utility-scale generating capacity currently stands at 524 GW, with renewable energy (including large hydro) accounting for 267 GW (51% of the total mix).

Core Business Model: Group Captive Open Access (GCOA)

The GCOA model is the primary regulatory mechanism utilized to deliver tariff optimization. By structuring the procurement through a Special Purpose Vehicle (SPV), C&I consumers achieve “prosumer” status, allowing them to bypass the Cross-Subsidy Surcharge (CSS) and Additional Surcharge (AS) typically levied on third-party Open Access.

Regulatory Thresholds for Group Captive Status

Requirement	Metric	Legal Basis
Minimum Equity Stake	26% (held collectively by consumers)	Rule 3, Electricity Rules 2005
Minimum Collective Consumption	51% (of annual energy generated)	Rule 3, Electricity Rules 2005
Ownership Structure	Special Purpose Vehicle (SPV)	Electricity Act 2003

Critical Risk Analysis: Retrospective Liability A vital regulatory nuance involves the 51% collective consumption threshold. Under the 2023 Amendment Rules, this is verified on a financial-year basis. Should the consumer group’s collective offtake fall below the 51% metric in any single year, the CSS for that entire period becomes retrospectively payable. TeCL manages this risk by sizing assets at 90–95% of the lowest forecast demand year.

Available Renewable Energy Solutions

TeCL provides tailored power profiles designed to match specific industrial load curves:

• Daytime Solar Power: Direct delivery during sunlight hours; optimal for single-shift textile mills, food processing units, and commercial office complexes.
• Wind-Solar Hybrid: Co-located assets providing a flatter generation curve and higher capacity utilization (CUF), suited for larger loads seeking 50–60% RE penetration without the cost of battery storage.
• Round-The-Clock (RTC): A blend of RE with conventional power or Battery Energy Storage Systems (BESS) for continuous 24/7 operations such as data centers and chemical plants.
• Behind-the-Meter (BTM): On-site rooftop or ground-mounted installations that bypass the grid entirely, exempting the consumer from all Open Access charges and wheeling losses.

Eligibility Criteria and Financial Drivers

TeCL evaluates respondents based on connected load and billing profiles. Organizations with monthly electricity expenditures exceeding ₹30 Lakh are classified as prime candidates for GCOA savings.

Target Consumer Profiles

Customer Category	Monthly Electricity Bill	Connected Load (Approx.)
Small-Medium Industrial Unit	₹30 Lakh to ₹80 Lakh	1 MW to 3 MW
Medium Factory / Plant	₹80 Lakh to ₹300 Lakh	3 MW to 10 MW
Large Industrial Complex	₹300 Lakh to ₹800 Lakh	10 MW to 30 MW
Very Large Plant / Estate	>₹800 Lakh	>30 MW

Key Financial Incentives:

• Localized Savings: Landed cost reductions are most pronounced in high-RE states. Savings average ₹3/kWh in Maharashtra and ₹2.70/kWh in Karnataka, compared to approximately ₹1.95/kWh in Gujarat.
• Accelerated Depreciation (AD): Profitable manufacturers can leverage AD benefits (40% WDV plus 20% additional depreciation in Year 1). In GCOA structures, these tax shields flow pro-rata to equity holders.

Information Requirements for Respondents

To develop site-specific financial models and sensitivity tables (covering CSS movement and PR variance), TeCL requires the following data:

1. Company name and specific industry sector.
2. Physical plant location (District and State).
3. Sanctioned contract demand (MW).
4. Average monthly energy consumption (kWh).
5. Facility operating schedule (24/7 or specific shifts).
6. Last 12 months of electricity bills (essential for modeling seasonal generation and demand-aligned scheduling).

Engagement Roadmap: EOI to Commissioning

Terra Clean acts as the Master Asset Manager, assuming all construction and O&M burdens. The onboarding follows a five-stage progression:

1. EOI Submission: Organization provides preliminary load data.
2. Eligibility & Qualification: TeCL audits 12 months of billing to prepare a preliminary savings estimate and feasibility note.
3. Customized Offer & Presentation: TeCL presents a site-specific model including the proposed SPV structure, tariff, and equity payback period.
4. Due Diligence & Negotiation: Finalization of commercial terms and statutory requirements.
5. PPA & SHA Execution: Signing of the Power Purchase Agreement (PPA) and Shareholders Agreement (SHA), initiating project finance and EPC milestones.

Submission Channels and Contact Information

Interested organizations may submit their response through the following dedicated channels:

• Online Form: www.terraclean.in
• Email: connect@terraclean.in

Primary Contact Points:

• Sreejit Basu, Chief Manager (TeCL): basus2@indianoil.in | +91-11-24347489
• Vinu G Krishnan, Sr. Manager (TeCL): vinugk@indianoil.in | +91-11-24347595
• Sajal, Manager (TeCL): sajal@indianoil.in | +91-11-24347482

Prospective bidders can track active tender announcements, check current bidding statuses, and access official procurement updates directly on the Terra Clean Tenders Page at https://terraclean.in/tenders