Bengaluru: IOC GPS Renewables Private Limited (IGRPL), a strategic joint venture between IndianOil Corporation Ltd. (IndianOil) and GPS Renewables, has achieved a major milestone in India’s clean energy transition by securing ₹836 crore (approximately USD 95 million) in debt financing from Indian Bank. The funds will be deployed to execute nine Compressed Biogas (CBG) projects across four states, marking the largest single-bank debt raise in the sector to date.
The facility agreements were signed on 30th September in New Delhi, with Indian Bank and IGRPL represented by CEO Devendra Singh Sehgal and CFO Punit Jain. This landmark transaction also sets a precedent as the first fully non-recourse debt raise in India’s CBG sector—also known as Renewable Natural Gas (RNG)—underscoring the growing confidence in biofuel infrastructure and the credibility of IOCL-backed ventures.
The ₹836 crore funding will support the development of nine CBG plants, strategically distributed across India: 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, contributing to both clean energy generation and agricultural waste management. All nine plants are expected to be completed and commissioned by 2026.
Speaking on the fundraise, Devendra Singh Sehgal, CEO of IGRPL, emphasized the transformative potential of the venture: “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, GPS Renewables’ asset platform, echoed the sentiment: “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 move aligns with India’s broader energy goals, including reducing carbon emissions, promoting circular economy models, and enhancing rural employment through decentralized energy production. By leveraging agricultural residues like paddy straw, the initiative also addresses stubble burning—a major environmental concern in northern India. With this funding, IGRPL is poised to become a key player in India’s renewable energy landscape, setting benchmarks for sustainable infrastructure, financial innovation, and public-private collaboration.
