Indraprastha Gas Ltd (IGL) has signed a joint venture agreement with CEID Consultants & Engineering Private Ltd to set up compressed biofuel and compressed biogas (CBG) projects, the company said in a filing to the stock exchanges, reports CNBC TV18.
The new entity will have equal equity participation, with both IGL and CEID holding a 50% stake. The JV’s board will initially include four directors — two from IGL and two from CEID — and will focus on building and operating biofuel assets as India expands its clean-energy infrastructure. The company clarified that the agreement is not a related-party transaction and carries no special rights beyond equal shareholding.
IGL shares closed 2.4% lower at ₹194.20 on Tuesday, ahead of the announcement.
The joint venture is part of IGL’s broader diversification efforts. In the second quarter, the city gas distributor reported a 4.5% sequential increase in net profit to ₹372 crore, supported by steady demand. Revenue rose 2.8% quarter-on-quarter to ₹4,022 crore, while EBITDA fell to ₹442 crore and margins declined to 11% due to higher input costs.
