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A joint venture between India's NTPC Green Energy and ONGC Green Energy is the highest bidder for Ayana Renewable Power having bid about $650 million, two people involved in the deal told Reuters.

The venture outbid JSW Energy for the renewable energy firm backed by quasi-sovereign wealth fund National Investment and Infrastructure Fund, the people said.

Ayana Renewable Power, owned by NIIF, British International Investment Fund and Green Growth Equity Fund, operates solar and wind plants that produce 1,600 megawatts in India and has another 2,500 megawatts in such projects under construction.

"After due diligence, NTPC Green Energy and ONGC Green Energy have jointly decided to acquire 100% stake of Ayana Renewable Power through a joint venture company," one of the sources said.

NTPC, ONGC, and Ayana Renewable Power did not immediately respond to queries sent by Reuters.

A JSW Group spokesperson declined to comment.

NTPC Green Energy and ONGC Green Energy signed an agreement in February this year to float an equal joint venture, the source said.

Large power producers in India are betting big on renewables and making pledges to expand their green energy capacities. The Indian government has pledged to add 500 gigawatts of clean energy by 2030 to reduce carbon emissions.

NTPC Green Energy, an arm of state-owned power company NTPC, is targeting a valuation of as much as $10.8 billion in an initial offering next week, that is set to be India's third-largest IPO this year.

It will sell all the shares in the IPO - which will be open for bids from Nov. 19-22 - and plans to use the proceeds to repay its unit NTPC Renewable Energy's debt.

ONGC Green Energy, a unit of state-owned Oil and Natural Corp (ONGC), is expected to list in the current financial year.