GPS Renewables secures Rs 50 crore funding to speed up CBG projects in India

GPSR Arya, the asset platform of Bengaluru based biogas major GPS Renewables, has secured Rs 500 million or Rs 50 crore in mezzanine funding from Alternates by Axis AMC. The objective of the funding is to accelerate the rollout of compressed biogas (CBG) projects across India.

GPS Renewables held that the investment will be used to expand CBG infrastructure through partnerships with public sector oil marketing companies, including IOCL and BPCL. The move comes as India seeks to strengthen domestic fuel sources amid volatility in global energy markets and its continued dependence on natural gas imports.

CBG, also known as Renewable Natural Gas (RNG), is produced from organic waste and is increasingly being positioned as a reliable alternative to fossil fuels. Unlike conventional fuels, it is largely insulated from geopolitical disruptions, as it relies on locally available feedstock and stable domestic supply chains. Recent global instability, particularly in West Asia, has highlighted vulnerabilities in imported fuel supply, with price fluctuations and supply constraints impacting Indian consumers.

Mainak Chakraborty, CEO and Co-Founder, GPS Renewables, stated, “CBG offers a unique advantage for India, given the abundance of locally available feedstock that can support the development of large-scale biofuel infrastructure. This deal reflects growing institutional recognition of biomethane and CBG both as a clean energy opportunity and as a strategic energy security asset.”

Parag Parikh, CEO, GPS Renewables Arya, added, “As India accelerates its clean energy transition, the focus for the sector is now towards large and scalable biogas infrastructure. Through the Arya platform, our priority is to accelerate the development of biogas projects across the country by expanding capacity across multiple feedstocks and geographies.”

Nachiket Naik, Head – Structured Credit at Axis AMC, said, “The transaction, one of the first in the private credit space in the CBG sector, demonstrates Axis AMC’s commitment to deliver tailored solutions for emerging cleantech sectors. We see this investment as a step towards supporting the development of large-scale CBG projects that can accelerate India’s efforts towards clean energy transition.”

Advised by Elements Financial Solutions, the deal comes as GPS Renewables scales its portfolio, with over 30 projects operational or nearing completion and more than 200 under development, alongside expansion into alternative fuels such as sustainable aviation fuel.

Last month, Climate Fund Managers (CFM) committed $ 32.2 million in a commercial-scale waste-to-biogas facility in Uttar Pradesh being built by GPS Renewables. In October 2025, the IOC GPS Renewables Pvt Ltd (IGRPL) – a JV – secured a debt financing worth Rs 836 crore from the Indian Bank for the development of nine CBG plants in India.