IOC GPS Renewables, a joint venture between Indian Oil Corporation (IOC) and GPS Renewables, plans to set up 10 compressed biogas (CBG) plants in the current financial year, with a total investment of ₹1,200 crore, reported Financial Express.
The company is focused on converting organic waste into renewable energy using advanced biogas technology. This move is expected to support India’s larger goal of achieving 500 GW of non-fossil fuel capacity by 2030.
Each plant will produce 15 tonnes of CBG per day—about 5,475 tonnes annually—and 50 tonnes of byproducts such as fertilizers and biomass pellets daily. The plants will be located across multiple states, including Karnal, Kaithal, and Sirsa in Haryana; Jaunpur, Sitapur, and Lakhimpur Kheri in Uttar Pradesh; Bemetara in Chhattisgarh; and NTR district in Andhra Pradesh.
“We are pursuing more sites for the coming years, even more than what we are building in FY26,” said Devendra Singh Sehgal, CEO of IOC GPS Renewables. He added that construction is expected to begin this month, with land already secured for all 10 projects. The joint venture was formed in June last year.
The company is also looking to supply biomass pellets to coal-based power plants, which currently use a 5% blend of biomass with coal. Sehgal said he expects this share to increase, much like the progress seen in ethanol blending.
“There’s strong demand for biomass pellets, but the supply is currently dominated by unorganised players. We hope this situation improves,” he noted.
IOC GPS Renewables is also in discussions with fertilizer companies and Indian Oil to distribute its fertilizer products. Indian Oil operates around 8,000 retail outlets where these products could be marketed.
Sehgal acknowledged some challenges in scaling up, particularly around pricing and supportive policies. “While ethanol blending has reached 20%, CBG is yet to reach that level. We’re hopeful that the right policies and pricing will help boost the sector,” he said.
He also pointed to the shortage of skilled manpower as a hurdle. “Each plant requires trained professionals, and the availability of skilled workers is still a challenge,” Sehgal added.
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