IGRPL, An IndianOil-GPS JV, Raises ₹836 Cr in Landmark CBG Financing Deal

IOC GPS Renewables Private Limited (IGRPL), a joint venture between IndianOil Corporation Ltd. (IndianOil) and GPS Renewables, focused on advancing India’s biofuels sector, has raised INR 836 crore (approximately USD 95 million) in debt financing from Indian Bank for the execution of 9 Compressed Biogas Projects across the country. The facility agreements were executed on 30th September 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 Compressed Biogas sector (CBG) (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, IGRPL (IOC and GPS Renewables Private Limited), 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.”

About IGRPL

IGRPL is a 50:50 Joint Venture by IndianOil 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. By leveraging their combined expertise, IndianOil and GPS Renewables aim to accelerate the deployment of CBG plants nationwide. These initiatives complement IndianOil’s long-term low-carbon development strategy and to achieve operational net zero by 2046, which will also help achieve net-zero target by 2070 for our Country. CBG offers numerous benefits to India and the environment. For the country, it promotes energy security by reducing dependence on imported fossil fuels and supports the rural economy by creating local employment opportunities.

About IndianOil

IndianOil, a leader in the global energy sector and ranked 116th on the Fortune Global 500 list, is driving India's transition to cleaner and greener energy with a strong focus on sustainability. The company has set an ambitious target of achieving operational Net-Zero Emissions by 2046, aligning with India's national goal of Net-Zero by 2070. Alongside its green energy focus, IndianOil remains a major player in the oil and gas industry, operating a refining capacity of 70.25 million metric tonnes per annum (MMTPA) and an extensive pipeline network stretching nearly 20,000 kilometers. IndianOil processes over 1.6 million barrels of crude oil daily and operates more than 61,000 customer touchpoints, including 37,500+ fuel stations. The company also serves over 150 million LPG customers and is a leader in the petrochemicals and lubricants segments. At the forefront of hydrogen mobility,biofuels, and electric vehicle infrastructure, IndianOil has installed over 10,028 EV charging stations across India, along with battery swapping services at key locations. As a promoter of the Government's SATAT initiative, IndianOil is advancing Compressed Biogas (CBG) under its "IndiGreen" brand. Additionally, the company has expanded its ethanol initiatives, launching E20 fuel at more than 5,700 outlets and Ethanol 100 fuel at 400 locations. IndianOil’s innovative solar cooktop, ‘Surya Nutan,’ is further proof of its commitment to clean energy, with plans to deploy 350 units in Madhya Pradesh. Beyond its core businesses, IndianOil remains dedicated to environmental sustainability, investing over Rs 457 crore in CSR projects focused on healthcare, education, skill development, and women empowerment. As IndianOil leads the charge towards a greener future, it continues to power the nation’s progress while expanding its presence in international

About GPSR (GPS Renewables) Group

Headquartered in Bengaluru, GPS Renewables (“GPSR”) is a full-stack biofuels firm offering technology and project solutions for climate-positive biofuel projects. Starting from captive biogas plants, GPSR has scaled up to set up some of the world’s largest RNG plants. In 2022, GPS Renewables launched GPSR Arya Pvt Ltd (“ARYA”) a wholly-owned subsidiary, to commission BOO (Build-Own-Operate) projects, augmenting its climate impact ambitions.

GPSR has formed joint ventures with Indian Oil, Bharat Petroleum, and Oil India to build compressed biogas (CBG) plants across India. These plants will process agricultural and organic waste, reduce carbon emissions, and support the government’s SATAT initiative.

Japan's Sojitz Steps into India’s Clean Energy Sector through GPS Renewables’ New $400 Mn Biomethane Platform

Sojitz Corporation (“Sojitz”) invests in a holding structure of the special purpose company established jointly by GPS Renewables Private Limited. (“GPSR”) and Indian Oil Corporation Ltd. (“IOCL”), which designs, constructs, operates, and provides maintenance for biomethane plants in India (“GPSR-IOCL Biomethane Platform”). Through this strategic investment, Sojitz will foray into biomethane production and sales in India.

Sojitz will work in collaboration with IOC GPS Renewables Pvt. Ltd. (IGRPL), a joint venture between GPS Renewables and Indian Oil Corporation Ltd, to develop and operate biomethane production facilities using agricultural waste as feedstock. IGRPL plans to establish 30 biomethane plants by FY 2026 - FY 2027 with a production capacity of 160,000 tons of biomethane annually. These projects have a total outlay of over USD 400 Mn. EY was the exclusive M&A investment banker and Cyril Amarchand Mangaldas led by Partner Alok Sonkar was the transaction advisor representing GPS Renewables.

GPS Renewables and Sojitz Corporation

Biomethane is produced by purifying biogas and it can be a direct replacement for fossil fuel, significantly reducing greenhouse gas emissions and promoting circular economy.

Commenting on the investment, Mainak Chakraborty, CEO and Co-Founder, GPS Renewables, said, “Sojitz and GPSR group have a shared vision of improving India’s energy self-sufficiency. As the country’s energy demand continues to rapidly grow, it’s crucial for us to prioritize biofuels and find ways to reduce our dependence on fossil fuels. This collaboration with Sojitz is a step towards increasing the production of cleaner sources of energy while reducing air pollution caused by the open burning of agricultural waste”.

Sojitz indicates that India is one of its key strategic markets and plans to play an active role in its transition to renewable energy. Green transformation (GX) business is a priority for Sojitz, and to advance this initiative further, a dedicated organization has been set up to drive their GX initiatives. Sojitz currently focuses on developing renewable energy projects that have the potential to accelerate India’s biomethane sector while also addressing a few key environmental concerns such as air pollution.

Through this investment, Sojitz and GPSR will work to drive India’s clean energy goals by accelerating the expansion of biomethane production and operation across the country. The companies will leverage GPSR’s expertise in biomethane production processes, technology expertise, indepth experience in design, construction, operation, and maintenance of biomethane plants. Additionally, IOCL’s expansive network with gas consumers will play a crucial role in scaling distribution. Furthermore, Sojitz will assess opportunities for biomethane production beyond India by deploying GPSR’s technology in new regions to explore opportunities in the broader bioenergy sector.

About Sojitz Group

Sojitz Corporation was formed out of the union of Nichimen Corporation and Nissho Iwai Corporation, both companies that boast incredibly long histories. For more than 160 years, their business has helped support the development of countless countries and regions. Today, the Sojitz Group consists of approximately 400 subsidiaries and affiliates located in Japan and throughout the world, developing wide-ranging general trading company operations in a multitude of countries and regions.

Sojitz Group is engaged in a wide range of businesses globally, including manufacturing, selling, importing, and exporting a variety of products, in addition to providing services and investing in diversified businesses, both in Japan and overseas. Sojitz operates with a 7-division structure comprising the Automotive Division; the Aerospace, Transportation & Infrastructure Division; the Energy Solutions & Healthcare Division; the Metals, Mineral Resources & Recycling Division; the Chemicals Division; the Consumer Industry & Agriculture Business Division; and the Retail & Consumer Service Division.

About GPSR Group

Headquartered in Bengaluru, GPS Renewables (“GPSR”) is a full-stack biofuels firm offering technology and project solutions for climate-positive biofuel projects. Starting from captive biogas plants, GPSR has scaled up to set up some of the world’s largest RNG plants. In 2022, GPS Renewables launched GPSR Arya Pvt Ltd (“ARYA”) a wholly-owned subsidiary, to commission BOO (Build-Own-Operate) projects, augmenting its climate impact ambitions.

IndianOil Equips Indian Army with Green Hydrogen Fuel Cell Bus for use in Delhi-NCR

In a significant step towards promoting sustainable, eco-friendly transportation solutions, IndianOil has handed over a state-of-the-art green hydrogen fuel cell bus to the Indian Army. This landmark event was marked by the signing of a Memorandum of Understanding (MoU) between IndianOil and the Indian Army to pioneer the deployment of hydrogen fuel cell technology for heavy-duty e-mobility.

The hydrogen fuel cell bus has a seating capacity of 37 passengers and promises an impressive mileage of 250-300 km on a full 30 kg tank of hydrogen fuel. This collaboration marks the Indian Army's commitment to adopting innovative technologies that enhance operational capabilities while ensuring environmental sustainability.

IndianOil is currently operating 15 fuel cell buses in the Delhi-NCR region, accumulating a total mileage of 300,000 kilometers, which works out to 20,000 km for each bus. The project will assess the performance of these buses in the demanding climatic conditions of the region and evaluate the effectiveness, longevity, and operational reliability of fuel cell buses intended for public fleet utilization.

The handing over and signing ceremony was held at the National War Memorial, India Gate, New Delhi, in the presence of General Manoj Pande (PVSM, AVSM, VSM, ADC), Chief of Army Staff, Mr. S M Vaidya, Chairman, IndianOil and senior officials of IndianOil and Indian Army.

General Manoj Pande, PVSM, AVSM, VSM, ADC, the Chief of Army Staff of the Indian Army shared his thoughts on the collaboration, stating, "The partnership between IndianOil and the Indian Army spans over six decades and is built on an unbreakable bond of trust. The Indian Army is committed to exploring and adopting innovative technologies that enhance our operational capabilities while ensuring environmental sustainability. We will be testing one of the hydrogen buses, and I must thank IndianOil for choosing the Indian Army as their partner."

Mr. S M Vaidya, Chairman, IndianOil, expressed his enthusiasm about this initiative, stating, "It is indeed a very momentous day today that a bus which is part of the green hydrogen fuel cell bus fleet will now be operated by the Indian Army. This collaboration with the Indian Army is a landmark step towards a greener and more sustainable future. IndianOil is currently operating 15 fuel cell buses in the Delhi-NCR region accumulating a total mileage of 300,000 kilometers i.e. 20000 kms on each bus”.

This initiative aims to promote hydrogen and fuel cell technology for heavy-duty e-mobility, positioning the Indian Army as a pioneer in evaluating this technology in collaboration with IndianOil, the premier energy company of India. The project will assess the performance of fuel cell electric buses for public transit in the demanding climatic conditions of the Delhi NCR region, analyzing the impact of local fuel and air quality on the performance of fuel cell systems and vehicles. Additionally, it will evaluate the effectiveness, longevity, and operational reliability of fuel cell buses intended for public fleet utilization.

This initiative marks a pivotal step in the journey towards sustainable transportation, setting a precedent for future collaborations aimed at advancing green hydrogen and fuel cell technologies in India.

IndianOil and Panasonic Energy To Form JV for Manufacturing Lithium-Ion Cells in India

Indian Oil Corporation Limited and Japan's Panasonic Energy Co. Ltd., a Panasonic Group company, have signed a binding term sheet to form a joint venture (JV) for manufacturing cylindrical lithium-ion cells in India.

This initiative is driven by the anticipated expansion of demand for batteries for two- and three-wheel vehicles and energy storage systems in the Indian market. Cylindrical lithium-ion batteries are commonly used in consumer electronics, power tools, and electric vehicles.

The two companies are engaging in a feasibility study regarding the utilization of battery technology to facilitate the transition to clean energy in India.

State-owned IOCL aims to achieve net-zero carbon emissions by 2046, aligning with the Indian government's plan to achieve net-zero for the country as a whole by 2070.

Through its partnership with IndianOil, Panasonic Energy aims to address environmental challenges, such as reducing CO2 emissions, as well as to contribute to establishing a complete supply chain ecosystem for improving India's self-reliance and fortifying India's position in the global energy landscape. This will also lead to the growth of India's battery industry by enhancing cell technology and creating domestic demand for raw materials and new entrants.

Leveraging its expertise in battery development and manufacturing, Panasonic Energy strives to contribute to the growth of the lithium-ion battery industry and India's energy transition, while pursuing its mission of helping to build a sustainable society.

Established in April 2022, Panasonic Energy provides battery technology-based products and solutions globally.

IndianOil aims to address environmental challenges, such as reducing CO2 emissions, through its partnership with Panasonic Energy. Leveraging Panasonic Energy’s expertise in battery development and manufacturing, both companies will strive to contribute to the growth of the lithium-ion battery industry and to India's energy transition, while pursuing its mission of helping to build a sustainable society.

Larsen & Toubro's Hydrocarbon Vertical Secures Large Project from IndianOil Adani Ventures

The Hydrocarbon vertical (L&T Energy Hydrocarbon – LTEH) of Larsen & Toubro (L&T) has recently secured a large onshore project from IndianOil Adani Ventures Limited.

The scope of work includes engineering, procurement, construction, and commissioning of Offsite Tankages, Bullets and other associated facilities on Lump Sum Turnkey basis.

According to the company’s classification of projects, the value of the order is between ₹ 2,500 to ₹ 5,000 crore.

LTEH is executing four prestigious projects under IOCL’s P-25 expansion programme. The earlier awarded projects under program-25 include Residue Hydro Cracker Unit (RHCU), Diesel Hydrotreater (DHDT) and Reactor Regenerator Package (RR).

Organised under Offshore, Onshore EPC, Modular Fabrication, Advanced Value Engineering & Technology (AdVENT), and Offshore Wind Farm Business Groups, LTEH offers integrated design-to-build solutions across the hydrocarbon sector to domestic and international customers. With over three decades of rich experience, LTEH has been setting global benchmarks in all aspects of project management, corporate governance, quality, health safety environment (HSE) and operational excellence.

Incorporated in 1996, IndianOil Adani Ventures (formerly known as Indian Oiltanking) is an unlisted public company headquartered in Vikhroli (Mumbai). It is a midstream infrastructure service and solution provider to the Oil, Gas, and Chemical Industries with domain expertise in Terminalling Services and, Renewable Energy in India and Build Capabilities globally.

Earlier in last month, the Buildings & Factories (B&F) business of Larsen & Toubro (L&T) Construction has secured an order from HITES (A Mini Ratna PSU), under the Ministry of Health and Family Welfare (MoHFW), to construct a new AIIMS at Rewari (Haryana) on a Design, Engineering, Procurement and Construction (EPC) basis in Q3 FY’24.

In November last year, L&T Construction secured a prestigious project from the GMR Visakhapatnam International Airport Limited for the Engineering, Procurement and Construction of the greenfield Bhogapuram International Airport at Bhogapuram, Andhra Pradesh.

Larsen & Toubro is a USD 23 billion Indian multinational engaged in EPC Projects, Hi-Tech Manufacturing and Services. It operates in over 50 countries worldwide. A strong, customer–focused approach and the constant quest for top-class quality have enabled L&T to attain and sustain leadership in its major lines of business for eight decades.

IIT Roorkee and Indian Oil (IOCL) Join Hands For The Promotion Of Education, Research, and Innovation

The cooperation aims to provide a model for the academia-industry partnership

CSIR/UGC-NET/GATE qualified students will get an opportunity to employ their skills to industry-specific technology and its deployment

Indian Institute of Technology Roorkee (IIT Roorkee) and Indian Oil Corporation Ltd (IOCL), a company duly registered under the Companies Act, 1956, come together to collaborate for the promotion of education, research, and innovation by offering IndianOil-IIT Roorkee (IOIITR) research fellowships to Ph.D students of IIT Roorkee to pursue their Ph.D. research work under the joint supervision of IIT Roorkee and IOCL on a topic of industrial importance. The MoU ensuing the cooperation aims to provide a model for the academia-industry partnership for directing Research and Development on projects relevant to the industry and with high prospects of commercialization.

The IOIITR research fellows will receive monthly fellowships from IOCL. This MoU also provides an opportunity for the M.Tech students of IIT Roorkee to choose their major research project of industrial relevance, which will be executed under the joint guidance of IIT Roorkee and IOC. The internship program will provide opportunities for students to combine their technical skills and innovative approaches for industry-specific requirements and deployment of developed solutions.

The MoU was duly signed by Dr C Kannan, ED (CT&TPF), IOCL and Prof K K Pant, Director, IIT Roorkee at Greater Noida Extension Center of IIT Roorkee.

On the occasion, Prof. K K Pant, Director, IIT Roorkee, highlighted, "We are delighted to partner with IOCL to carry collaborative research of industrial importance. We believe that having industry experts as joint supervisors of Ph.D and M. Tech students will ensure that research outcomes are directly useful to our Industry. At the same time, the student also gets academically trained to deal with industrial problems and technology deployment”.

In his address, Dr C Kannan, ED (CT&TPF), IOCL, said, "IIT Roorkee is among the foremost Institutes of National Importance in higher technological education and in engineering, basic and applied research. Thus this cooperation will allow for practical training and specialised expertise to work on pertinent technologies and problems."

eVolt India and Indian Oil partner to Install EV Charging Stations in Punjab, Haryana and Uttar Pradesh

The partnership is one step closer to eVolt's mission to accelerate green mobility and electric vehicle industry growth across markets, by building a robust, affordable and connected charging infrastructure network

NEW DELHI/September 13, 2022: Leading electric vehicle charging Infrastructure startup eVolt India and Indian Oil Corporation Limited (IOCL) have entered into a strategic collaboration for the installation of 75+ EV charging stations in the states of Punjab, Haryana and Uttar Pradesh.

As part of the awarded contract, the Delhi-based charging solutions provider will set up 3.3kW AC and 7.4kW AC charging stations for both two-wheelers (E2W) and four-wheelers (E4W) at the existing IOCL fuelling pumps in these key territories. The supporting charging standards are AC001 (IEC 60309) for 3.3kW and Type-2 (IEC 62196) for 7.4kW AC slow and fast chargers.

“Our partnership with an important stakeholder like IOCL aligns with eVolt’s vision to build a robust EV charging station network and encourage mass EV adoption by alleviating range anxiety. We are thrilled to be contributing to India’s green mobility goals through this partnership. With the addition of these charging stations to our existing network, we plan to aggressively scale up our EV charging infrastructure pan-India by working closely with stakeholders in the private and public spaces," said Sarthak Shukla, Founder and CEO, eVolt India.

eVolt is also an empanelled vendor of three DISCOMs in Delhi, namely the BSES Rajdhani Power Limited (BRPL), BSES Yamuna Power Limited (BYPL), and Tata Power Delhi Distribution Limited (TPDDL). eVolt has helped leading institutions in healthcare and higher education domains in Rajasthan, Uttar Pradesh and Delhi, to go green by setting up AC and DC charging stations on their premises.

About eVolt

eVolt, India's leading electric vehicle (EV) charging infrastructure startup, was founded in 2019 by Sarthak Shukla to make EV Charging accessible using a well-connected smart charging network that is built via strategic partnerships with public and private property owners.

Through our range of intelligent Wallboxes, floor-mounted and portable AC and DC charging solutions and software solutions such as the charging management platform for residences, offices, and fleets, eVolt aspires to help individuals, businesses and governments set up electric vehicle charging points where EV owners can 'refuel' to unlock longer distances. eVolt's mission is to accelerate green mobility and electric vehicle adoption across markets, by building a robust, affordable and connected charging infrastructure, and forming strategic partnerships at important hotspots and with the stakeholders involved — while providing an unmatched customer experience.

Indian Oil Corporation To Form JV Companies with L&T and ReNew Power for Green Hydrogen Production

Last year in July, Indian Oil Corporation Limited (IOC) announced that it is building India's first 'Green Hydrogen' plant at its Mathura refinery. Now almost a year after, IOC has signed a binding term sheet with two private firms -- Larsen & Toubro (L&T) and ReNew Power (ReNew) -- to set up a Joint Venture (JV) company that will develop the green hydrogen sector in India.

As per lastest IOC release, there will be two JV companies --- one involving three entities, IOC, L&T and ReNew, and second between IOC and L&T, only  

As per first JV, three companies will together aim to supply green hydrogen at an “industrial scale” by combining L&T’s credentials in designing, executing, and delivering engineering, procurement and construction projects, Indian Oil’s established expertise in petroleum refining with its presence across the energy spectrum, and the expertise of ReNew in offering and developing utility-scale renewable energy solutions.

In second JV, IndianOil-L&T JV will focus on production and sale of Electrolyzer. IOC and L&T have signed an additional binding term sheet to form a JV with equity participation to manufacture and sell Electrolyzers used in the production of Green Hydrogen. 

While IOC is an Indian government owned oil & gas explorer and producer, L&T and ReNew are private companies. ReNew is Gurgaon-based renewable energy company that focuses on wind-energy projects. Backed by hedge fund Sylebra Capital and investment bank Goldman Sachs, ReNew went public in August last year, at the US stock exchange NASDAQ. 

ReNew has recently commissioned Gujarat's first wind-solar hybrid project at the Chlor-Alkali unit of Grasim Industries Ltd in Vilayat, Bharuch.

Government of India's draft guidelines on the National Hydrogen Mission aims to increase production to 5 million metric tonnes (MMT) by 2030 to meet about 40% of domestic requirements.

The planned JVs aim is to enable India’s transition from a grey hydrogen economy to a greener economy that increasingly manufactures hydrogen via electrolysis powered by renewable energy.

Green hydrogen is derived from water electrolysis using renewable energy like solar or wind. Biomass-based hydrogen production technologies also qualify under the green category. On the other hand, Brown and grey hydrogen are produced through coal gasification and natural gas reforming, respectively.

As of now, nearly all of the hydrogen currently produced in India is grey hydrogen using natural gas and ammonia.

The latest IOC release said -- By 2050, nearly 80% of India’s hydrogen is projected to be ‘green’ – produced by renewable electricity and electrolysis. Green hydrogen may become the most competitive route for hydrogen production by around 2030. This may be driven by potential cost declines in key production technologies and in clean energy technologies such as solar PV and wind turbines.

Today, hydrogen is mainly used in the refining, steel and fertilizer sectors, which will be the focus of the JVs’ initial efforts. The country’s refining sector consumes approx. 2 MMT of grey hydrogen every year, with IndianOil owning one of the largest shares of its refining output.

Last year in August, Indian Railways announced that its exploring the feasibility of retrofitting the trains (that presently run o­n diesel) with hydrogen fuel and for same it invited bids for "hydrogen fuel cell-based technology" for retrofitting the existing Diesel Electric Multiple Unit (DEMU) and will be test it out in 89 km Sonipat-Jind section of Northern Railway.

Converting Used Cooking Oil into Bio-Diesel - Govt Launches Programme in 100 Cities

State-run oil marketing companies Indian Oil, Bharat Petroleum and Hindustan Petroleum on Saturday launched a programme to procure biodiesel made from used cooking oil in 100 cities across the country.

The programme was formally launched by Petroleum and Natural Gas Minister Dharmendra Pradhan, under which the three OMCs would invite expression of interest from private entities for setting up plants to produce biodiesel from used cooking oil.

Initially, the biodiesel would be procured by the OMCs at an assured rate of Rs 51 per litre, which would be increased to Rs 52.7 in the second year and Rs 54.5 per litre in the third year.

The minister also launched Repurpose Used Cooking Oil (RUCO) sticker and a mobile phone application for collection of used cooking oil (UCO) to ensure that it does not come back to ecosystem.

The sticker would affixed by the food joints, hotels and restaurants in their premises to show that they supply UCO for producing biodiesel.

Addressing an event to mark 'World Biofuel Day' here, Pradhan said, "Biodiesel is available in many forms other than used cooking oil. It is waste to wealth. We will celebrate World Biofuel Day as alternative energy day."

"Like Amul, where milk is collected from households and then converted into a commercial product, there will be RUCO movement. The biggest issue (with biofuels like compressed bio gas) was offtake guarantee. More than 300 firms have got letter of intent for compressed bio gas. Its implementation is a challenge. But we are targetting 5,000 such units till 2024."

He also said, "China has a larger population but its (energy) distribution is not that organised as compared to our three oil marketing companies. That includes city gas distribution firms also.

"Under the Pradhan Mantri Ujjwala Scheme, we would achieve the target of providing 8 crore LPG connections by September end. Already, there is 20 per cent reduction in chest congestion disease reported in India due to the clean fuel movement."

Regarding ethanol blending, he said,"We would also make ethanol from surplus food stock. At present we produce ethanol from sugarcane molasses. Non-subsidised bio mass would be converted into energy."

"About four-five years ago, we had decided to increase ethanol blending with petrol. It has increased from 1.5 per cent to 7 to 8 per cent. It will soon be 10 per cent. Our ultimate goal is to achieve 20 per cent ethanol blending with petrol," the minister added.

At present, 850 crore litres of diesel is consumed every month in India. The government aims to blend 5 per cent of biodiesel in diesel by 2030. Thus, 500 crore litres of biodiesel is required in a year.

In India, 2,700 crore litres of cooking oil is used, out which 140 crore UCO can be collected from bulk consumer such as hotels, restaurants and canteens for conversion, which will give around 110 crore litres of biodiesel every year.

At present, there is no established chain of collection for UCO, which presents a huge opportunity.

Speaking on the occasion, Health Minister Harsh Vardhan lauded the efforts of the oil ministry for converting USO into biodiesel.

He said the repeated use of UCO can cause diseases like hypertension, atherosclerosis, Alzheimer's and liver ailments, among others. PTI KKS