IOCL – GPS Renewables JV gets Rs 836 crore for 9 CBG projects

As the quest for bioenergy through scientific waste management grows stronger, the IOC GPS Renewables Pvt Ltd (IGRPL) has secured a debt financing worth Rs 836 crore or USD 95 million from the Indian Bank for the development of nine Compressed Biogas (CBG) plants in India.

The company is a joint venture between Indian Oil Corporation Ltd. (IOCL) and GPS Renewables and the agreement was formalized in New Delhi, with IGRPL CEO Devendra Singh Sehgal and CFO Punit Jain representing the company.

As per IGRPL, this transaction marks a significant milestone for India’s biofuel sector. It is the largest single-bank debt financing achieved in the CBG industry to date and the first instance of fully non-recourse debt funding in the segment. The move highlights growing confidence in biofuels as a vital component of India’s clean energy transition.

Nine Projects Across Four States

The funding will be directed toward construction of nine (9) CBG facilities which would include four in Haryana, three in Uttar Pradesh, one in Chhattisgarh and one in Andhra Pradesh. Each plant will have a production capacity of 15 tonnes of CBG per day, using paddy straw as the primary raw material.

As per reports, all projects are targeted for completion by 2026.

Devendra Singh Sehgal, CEO of IGRPL, said, “This funding gives IGRPL 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 stated,  “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.”