New Delhi: IOC GPS Renewables Private Limited (IGRPL), a joint venture between IndianOil Corporation and GPS Renewables, has raised INR 836 crore (USD 95 million) in debt financing from Indian Bank to develop nine compressed biogas (CBG) projects across India.
The financing agreements were signed on September 30 in New Delhi between Indian Bank and IGRPL, represented by CEO Devendra Singh Sehgal and CFO Punit Jain. This marks the largest single-bank debt raise in India’s CBG sector and the first fully non-recourse debt financing in the space.
The nine projects, spread across four states, include four in Haryana, three in Uttar Pradesh, one in Chhattisgarh, and one in Andhra Pradesh. Each facility will produce 15 tonnes of CBG per day using paddy straw as feedstock. All plants are expected to be commissioned by 2026.
Devendra Singh Sehgal, CEO of IGRPL, said: “IGRPL was formed with an aim to scale India’s biogas infrastructure and drive wider adoption. This funding gives us the momentum to accelerate that mission. This is the first time that an OMC joint venture has secured a sanctioned loan for CBG projects without corporate collateral, reflecting IOCL’s strong credibility and the sector’s immense potential.”
Deepak Agarwal, MD of GPSR Arya, the asset platform of GPS Renewables, said: “Securing the largest single-bank funding in the CBG sector underscores the scale of opportunity. As India advances in its clean energy journey, our vision is to build a nationwide network of CBG plants, reduce fossil fuel dependence, and cut greenhouse gas emissions.”
Compressed biogas, also known as renewable natural gas, is expected to play a significant role in India’s energy diversification efforts. With IOCL’s backing and GPS Renewables’ execution capacity, IGRPL is positioning itself as a key player in the sector.
BI Bureau
