IOC GPS Renewables (IGRPL) has secured ₹8.36 billion (~$94.2 million) in debt financing from the Indian Bank to develop nine compressed biogas (CBG) plants in Uttar Pradesh, Chhattisgarh, Andhra Pradesh, and Haryana.

IGRPL is a joint venture between the Indian Oil Corporation and GPSR Arya, a subsidiary of GPS Renewables.

Three projects will be in Uttar Pradesh, one each in Chhattisgarh and Andhra Pradesh, and four in Haryana. Each plant will have a capacity to produce 15 tons of CBG daily. These facilities will utilize paddy straw as feedstock. All nine plants are expected to be commissioned by 2026.

Devendra Singh Sehgal, CEO at IGRPL, stated that this funding is the first instance of an oil marketing company joint venture securing a loan for CBG projects without any corporate collateral.

In April this year, Japan-based Sojitz Corporation invested &400 million in IGRPL to enter the biomethane production segment and sales businesses in India. With this investment, IGRPL will develop and operate biomethane production and sales businesses using feedstock, including agricultural waste.

IGRPL aims to operationalize 30 biomethane plants in India between the financial years 2026 and 2027. These plants are expected to annually produce and sell 160,000 tons of biomethane.

In October 2024, Indian Oil Corporation entered into a joint venture agreement with EverEnviro Resource Management to convert organic waste into CBG. The agreement aimed to pave the way for forming a 50:50 joint venture company to advance biofuel adoption nationwide.

In June this year, the Ministry of New and Renewable Energy revised the guidelines for the National Biomass Program for the financial years 2022 to 2027 (Phase-I). These amendments aim to promote cleaner energy solutions, ease of doing business, and accelerate the adoption of biomass technologies across India.

In July, the Ministry of Petroleum and Natural Gas amended the disbursal pattern of financial assistance for CBG projects to procure biomass aggregation machinery.