IOC GPS Renewables Raises Rs 8.36 billion Debt for Compressed Biogas Plants

IOC GPS Renewables Private Limited has secured Rs 8.36 billion in debt financing from Indian Bank to execute nine Compressed Biogas (CBG) projects across India. The funding is the largest single-bank debt raise in the CBG sector and the first fully non-recourse financing in India for these projects. The plants will produce 15 tonnes of CBG per day using paddy straw, with all slated for completion in 2026. In a significant stride towards India’s renewable energy goals, IOC GPS Renewables Private Limited (IGRPL), a joint venture between IndianOil Corporation Ltd. (IOCL) and GPS Renewables, has secured ₹836 crore (approximately USD 95 million) in debt financing from Indian Bank.

This funding is earmarked for the development of nine Compressed Biogas (CBG) plants across four Indian states: Haryana, Uttar Pradesh, Chhattisgarh, and Andhra Pradesh. Each plant is designed to produce 15 tonnes of CBG per day, utilizing paddy straw as the primary feedstock, and is slated for completion by 2026 The financing arrangement is notable for two reasons: it represents the largest single-bank (Oil) raise in the CBG sector and is the first fully non-recourse debt financing for such projects in India This means that the loan is secured solely against the assets of the individual plants, without any corporate guarantees from IOCL or GPS Renewables.

This innovative financing structure underscores the growing investor confidence in the viability and profitability of renewable energy projects in India The strategic location of these plants across diverse agricultural regions is expected to have a multifaceted impact. By converting agricultural residue, particularly paddy straw, into CBG, the project addresses the dual challenges of waste management and energy production. This approach not only mitigates the environmental hazards associated with the open burning of crop residues but also contributes to reducing greenhouse gas emissions. Furthermore, the production of CBG offers a sustainable alternative to fossil.

Fuels, aligning with India’s commitment to achieving net-zero emissions by 2070 The funds raised will be utilized for the establishment of these plants, each with a capacity to produce 15 tonnes of CBG per day, utilizing paddy straw as the primary feedstock. The plants are expected to be completed and commissioned by 2026 (Renewable) This development is a testament to the growing confidence in India’s renewable energy sector and the potential for innovative financing models to support sustainable infrastructure. As the country continues to invest in clean energy solutions, initiatives like this play a crucial role in transitioning towards a more sustainable and resilient energy future.

In a landmark move signaling India’s deepening commitment to renewable energy, IOC GPS Renewables Private Limited (IGRPL), the joint venture between Indian Oil Corporation Ltd. (IOCL) and GPS Renewables, has successfully secured ₹836 crore in debt financing from Indian Bank. This substantial infusion of capital is earmarked for the development of nine state-of-the-art Compressed Biogas (CBG) plants across strategically chosen agricultural regions in Haryana, Uttar Pradesh, Chhattisgarh, and Andhra Pradesh. The project aims to leverage the abundant availability of paddy straw, transforming this agricultural residue into a clean, sustainable fuel while addressing critical environmental challenges such as air pollution caused by crop residue burning.