Gas

GAIL to invest Rs. 13 crore in TruAlt's CBG arm for 49% stake

The JV's first phase is projected to displace approximately 19,800 tonnes of fossil fuels annually and avoid 9,300 tonnes of methane emissions per annum

  • By ICN Bureau | March 20, 2026

GAIL (India) Limited has invested Rs. 13 crore in Leafiniti Bioenergy, a subsidiary of TruAlt Bioenergy. This strategic move is designed to boost TruAlt's Compressed Biogas (CBG) production and support India's shift toward cleaner energy solutions.

This investment is pursuant to the Share Subscription-cum-Shareholders' Agreement executed on August 11, 2025, under which GAIL is set to acquire 49% equity stake in Leafiniti.

Under the terms of the agreement, GAIL is investing Rs. 13.54 crore in Leafiniti to fund new Compressed Bio-Gas (CBG) projects. Following the deal, TruAlt will hold a 51% stake and GAIL 49%, creating a balanced strategic partnership. This phased investment follows strict governance and project approval standards to ensure disciplined growth in the clean gas sector.

This joint venture marks a pivotal step in India’s transition to clean energy, merging TruAlt’s bioenergy expertise with GAIL’s robust gas infrastructure. The partnership will roll out a network of greenfield Compressed Bio-Gas (CBG) plants across Karnataka, Maharashtra, and Odisha, aiming for rapid scalability and significant socio-economic and environmental benefits.

In its first phase, the joint venture will roll out six state-of-the-art greenfield plants, each with a capacity of 12 tonnes per day, primarily based on associated residues from sugar mills, delivering a combined annual output of 23,976 tonnes of CBG. This buildout is expected to create approximately 820 to 1,225 direct and indirect jobs, catalysing rural employment and economic activity. In addition to clean energy, the facilities will generate high-value agricultural inputs, including 97,902 tonnes of Fermented Organic Manure (FOM) and 4, 70,862 tonnes of Liquid Fermented Organic Manure (LFOM) annually. This will improve soil health and strengthen circular agriculture, ensuring that farmers become active stakeholders and beneficiaries in India's green energy transition.

From an environmental perspective, the JV's first phase is projected to displace approximately 19,800 tonnes of fossil fuels annually and avoid 9,300 tonnes of methane emissions per annum, contributing meaningfully to India's climate commitments, including its net-zero by 2070 vision.

Vijay Nirani, Founder & Managing Director, TruAlt Bioenergy, said: "In an era defined by geopolitical flux and the reconfiguration of global energy supply chains, nations are being compelled to fundamentally rethink the foundations of their energy security. For India, this moment presents a historic opportunity to transition from being a price-taker in global fuel markets to becoming a builder of resilient, self-sustaining energy systems. At TruAlt Bioenergy, we see clean gas, particularly CBG, as a strategic cornerstone of this transition. It offers India a uniquely powerful pathway to decouple growth from volatility by converting its abundant agricultural resources into a stable, indigenous energy source, while placing farmers at the very heart of the energy value chain.

Our partnership with GAIL is a decisive step towards institutionalising this vision at scale, creating a distributed, circular energy ecosystem that is as economically robust as it is environmentally restorative.

This joint venture goes beyond infrastructure or investment; it reflects a new paradigm in energy thinking where national security, rural prosperity and climate action are not competing priorities, but converging outcomes. By aligning public sector strength with private sector innovation, we are building an energy architecture that is future-ready, globally competitive, and fundamentally rooted in India's strengths. In doing so, we are not just responding to the uncertainties of today, we are shaping the contours of a more secure, self-reliant, and climate-resilient energy future for India." Nirani added.

Rajeev Kumar Singhal, Director Business Development, GAIL (India) Limited, said: "India currently imports about 50% of its natural gas requirement. By scaling up CBG, we can reduce foreign exchange outflows strengthen energy security against global price and supply shocks. We are seeing a future where our energy is produced locally, in our own villages and cities. CBG is not just a fuel, it addresses waste management, fuels our transport, and empowers our rural heartlands. Government of India is also supporting CNG sector in a big way to establish thousands of CBG plants nationwide with incentive schemes and favourable policy framework. The partnership between GAIL and TruAlt will complement the strengths of both companies in terms of GAIL's gas marketing expertise alongwith vast gas pipeline network and TruAlt's access to feedstock and its experience in operating CBG plant. I am confident that this strategic partnership will lead to the establishment of several new CBG plants."

Other Related stories

Startups

Chemical

Petrochemical

Digitization