Petronet LNG Limited (PLL) signed a binding term sheet on October 22, 2026 with Gruner Renewable Energy Private Limited to form a joint venture that will set up Compressed Bio-Gas (CBG) plants in several states across India, according to a regulatory filing with the stock exchanges.
The proposed joint venture company plans to build 10 CBG plants across the country, each with a capacity of 18 tonnes per day, at an estimated capital cost of Rs 1,200 crore, the filing showed.
According to the disclosure, the venture will cover the full CBG value chain. This includes sourcing feedstock and producing, processing, compressing, storing, transporting, distributing, trading and selling CBG and its by-products. It will also set up, develop, operate, maintain and commission CBG plants, and may take up other business opportunities linked to bioenergy.
The joint venture will be formed as a private limited company in which Petronet LNG and Gruner Renewable Energy will each hold 50 per cent equity, the company said. Each partner will appoint directors to the joint venture board in proportion to its shareholding.
Petronet LNG stated that it holds no shares in Gruner Renewable Energy. It also said that Gruner is not related to its promoter, promoter group or group companies in any way, and that the deal does not count as a related party transaction.
No shares are being issued to either party under the arrangement, according to the filing. The company said no other disclosures, such as board nominee details or potential conflicts of interest, applied to the agreement.
