IOCL-GPS Renewables: ₹1200 Crore Plan to Build India's CBG Network

IOCL GPS Renewables, a 50:50 joint venture between Indian Oil Corporation (IOCL) and GPS Renewables, is set to raise up to ₹1,200 crore, primarily through long-term debt, to fund the development of nearly 10 Compressed Bio Gas (CBG) plants across India.

The fundraising process is expected to conclude within the next 12 months, with the first set of CBG projects targeted for commissioning within two to three years. IOCL and GPS Renewables will jointly raise the debt as project co-developers. While the specific debt instruments are yet to be finalised, the JV is exploring all available options, with a preference for long-term bank financing.

The funding structure will follow a 70:30 debt-to-equity ratio, with both partners contributing equally to the equity component. In addition to these projects, the JV has signed two more agreements with oil marketing companies, reflecting growing industry momentum and interest.

This initiative supports the Government of India’s Sustainable Alternative Towards Affordable Transportation (SATAT) programme, aimed at promoting Compressed Bio Gas and other renewable fuels to improve energy security, reduce greenhouse gas emissions, and advance the nation’s net-zero goals.

News by Rahul Yelligetti.