IGRPL Raises USD 95 Million from Indian Bank for Capacity Expansion This funding is the largest single-bank debt raise in the Compressed Biogas sector, also referred to as Renewable Natural Gas or RNG. This is also the first case of a fully non-recourse debt raise in this sector.
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IOC GPS Renewables Pvt. Ltd. (IGRPL), a joint venture between Indian Oil and GPS Renewables, has raised INR 836 crore (approximately USD 95 million) in debt financing from Indian Bank for the execution of 9 Compressed Biogas (CBG) projects across the country.
The facility agreements were executed on September 30 in New Delhi between Indian Bank and IGRPL, represented by its CEO, Devendra Singh Sehgal, and CFO, Punit Jain.
This funding is the largest single-bank debt raise in the CBG sector, also referred to as Renewable Natural Gas or RNG. This is also the first case of a fully non-recourse debt raise in this sector.
The funds will be used towards development of CBG plants across India, with 4 projects in Haryana, 3 in Uttar Pradesh, 1 in Chhattisgarh and 1 in Andhra Pradesh. Each plant has a capacity to produce 15 tonnes of CBG per day and will use paddy straw as the primary feedstock. All 9 plants are expected to be completed and commissioned in 2026.
Commenting on the fundraise, Devendra Singh Sehgal, CEO, said, "IGRPL was formed with an aim to scale India's biogas infrastructure and drive wider adoption. This funding gives us 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 any corporate collateral, indicating IOCL's strong credibility and the sector's massive potential. This not only builds confidence among stakeholders but also encourages more large-scale investments in India's clean energy sector."
Deepak Agarwal, MD of GPSR ARYA (GPS Renewables' asset platform), said, "Securing the largest single-bank funding in the CBG sector underscores the scale of the opportunity that exists. As the country makes significant strides towards a clean energy transition, our vision is to drive biofuel production and position India as a leading producer of renewable energy. This fundraise is a pivotal step in IGRPL's journey as it enables us to execute our ambitious plan of building a nationwide network of CBG plants to significantly reduce our dependence on fossil fuels and lower greenhouse gas emissions."
IGRPL is a 50:50 joint venture by Indian Oil and GPS Renewables Arya established in 2024. The joint venture will focus on integrating advanced biogas technologies to convert organic waste into compressed biogas (CBG), a cleaner and renewable energy source. This will significantly reduce greenhouse gas emissions while providing a sustainable alternative to traditional fossil fuels.
