New Delhi: In a landmark move for India’s clean energy transition, IOC GPS Renewables Private Limited (IGRPL)—a joint venture between IndianOil Corporation Ltd. and GPS Renewables—has raised ₹836 crore (approximately USD 95 million) in debt financing from Indian Bank. The funds will be used to execute nine Compressed Biogas (CBG) projects across the country, marking the largest single-bank debt raise in India’s CBG sector to date.
This is also the first instance of a fully non-recourse debt raise in the Renewable Natural Gas (RNG) space, signaling a major shift in investor confidence and institutional support for biofuels. The milestone underscores IOCL’s credibility and the sector’s growing maturity, as the joint venture secured the sanctioned loan without any corporate collateral.
The nine CBG plants will be strategically located across India, with four in Haryana, three in Uttar Pradesh, one in Chhattisgarh, and one in Andhra Pradesh. Each facility is designed to produce 15 tonnes of CBG per day using paddy straw as the primary feedstock—an agricultural residue that often contributes to stubble burning and air pollution. By repurposing this waste into clean energy, the initiative promises both environmental and economic impact.
All nine plants are expected to be completed and commissioned by 2026, forming a nationwide network that will significantly reduce India’s dependence on fossil fuels and lower greenhouse gas emissions.
Devendra Singh Sehgal, CEO of IGRPL, emphasized the strategic importance of the fundraise, stating, “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 any corporate collateral, indicating IOCL’s strong credibility and the sector’s massive potential. This not only builds confidence among stakeholders but also encourages more large-scale investments in India’s clean energy sector.”
Deepak Agarwal, Managing Director of GPSR Arya—the asset platform of GPS Renewables—added, “Securing the largest single-bank funding in the CBG sector underscores the scale of the opportunity that exists. As the country makes significant strides towards a clean energy transition, our vision is to drive biofuel production and position India as a leading producer of renewable energy. This fundraise is a pivotal step in IGRPL’s journey as it enables us to execute our ambitious plan of building a nationwide network of CBG plants to significantly reduce our dependence on fossil fuels and lower greenhouse gas emissions.”
The fundraise reflects a growing appetite for sustainable infrastructure and signals a new era for India’s biofuels sector. With the government pushing for cleaner alternatives and circular economy models, IGRPL’s initiative aligns with national goals for energy security, rural development, and climate action.
As the plants come online, they are expected to generate employment, reduce stubble burning, and contribute to India’s renewable energy targets—making this one of the most impactful clean energy investments of the year.
