New Delhi: The board of state-run Indian Oil Corporation (IOCL) on Friday approved joint ventures with EverEnviro Resource Management Pvt Ltd and GPS Renewables Pvt Ltd for setting up compressed biogas (CBG) plants.
In a regulatory filing, the oil marketing company (OMC) said that both the joint ventures are subject to approvals from NITI Aayog, the Department of Investment and Public Asset Management (DIPAM) among others.
The board of directors on Friday approved the “formation of 50:50 joint venture company in India between EverEnviro Resource Management Pvt. Ltd., and Indian Oil or its wholly owned subsidiary, subject to approval of NITI Aayog, DIPAM etc. for setting up of compressed biogas plants". Similarly, the joint venture with GPS Renewables will also be formed with IOCL or a subsidiary of the public sector major.
The joint ventures will strengthen IOCL’s presence in the CBG space. In its annual report for FY23, the company said that IOCL is spearheading the promising SATAT initiative that aims to boost the availability of biofuels as a viable green automotive option while reusing organic waste and strengthening the rural economy.
By the end of 2022-23, IOCL had commissioned 22 CBG plants, offering biogas through 46 Indigreen outlets. It said that a 200 tonnes per day (TPD) plant has been set up in Gorakhpur using agri-crop residue and providing an eco-friendly solution for rice straw disposal. In Hingonia, near Jaipur, a 100 TPD cattle dung-based CBG plant has been set up at the Hingonia Cattle Rehabilitation Centre.
Indian Oil has been looking at joint ventures in the alternative energy space as it aims to achieve net zero by 2046. Last month, its joint venture company with ReNew and L&T for a green hydrogen business named ‘GH4India Pvt Ltd’ was incorporated. In March, it signed a pact with NTPC Green Energy Limited for setting up renewable energy projects to meet the round-the-clock power requirement of IOCL refineries.
At its 64th annual general meeting last month, the CMD Shrikant Madhav Vaidya said that the oil marketing company will invest $30 billion in its green initiatives.
This investment will be strategically allocated to fuel an array of comprehensive environmental sustainability measures across the corporation’s vast operations, he had said.
Shares of Indian Oil on the BSE closed at ₹90.92, higher by 1.24% from its previous close.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!