IOC GPS Renewables Secures Rs.836 Crore Loan from Indian Bank

IOC GPS Renewables Private Limited (IGRPL) — a joint venture between Indian Oil Corporation Ltd (IndianOil) and GPS Renewables — has secured ₹836 crore in debt financing from Indian Bank to execute nine Compressed Biogas (CBG) projects across the country. The company focuses on advancing India’s biofuels and renewable energy sector.

This marks the largest single-bank debt raise in the CBG (Renewable Natural Gas) sector and the first instance of a fully non-recourse debt raise in this space, according to an official release.

The funds will be used to develop CBG plants in different states — four in Haryana, three in Uttar Pradesh, one in Chhattisgarh, and one in Andhra Pradesh. Each plant will have a capacity of 15 tonnes of CBG per day and will primarily use paddy straw as feedstock. All nine plants are expected to be completed and commissioned by 2026.

IndianOil GPS Renewables (IGRPL) is a joint venture between Indian Oil Corporation (IOCL) and GPS Renewables.

Devendra Singh Sehgal, CEO of IGRPL, said the funding provides strong momentum to accelerate the company’s mission. “This is the first time an OMC joint venture has secured a sanctioned loan for CBG projects without any corporate collateral. It highlights IndianOil’s strong credibility and the vast potential of the CBG sector. This milestone boosts stakeholder confidence and encourages further large-scale investments in India’s clean energy future,” he said.

Deepak Agarwal, Managing Director of GPSR ARYA, added, “Securing the largest single-bank funding in the CBG sector underscores the immense opportunities ahead. As India advances toward a clean energy transition, our vision is to drive biofuel production and establish the country as a global leader in renewable energy. This fundraise is a crucial step for IGRPL in building a nationwide network of CBG plants that will reduce dependence on fossil fuels and lower greenhouse gas emissions.”