New Delhi: Indraprastha Gas Limited (IGL) has entered into a joint venture with Waste Treatment Private Ltd (HWT) to develop compressed biogas (CBG) plants and biofuel projects, strengthening its presence in the renewable and clean fuel segment.
Under the agreement, both partners will hold an equal 50% stake in the proposed venture, IGL said in a filing to the stock exchanges on Friday, December 19. The joint venture’s board will initially comprise four directors, with two nominees representing each company.
“The partnership aims to expand IGL’s presence in the renewable energy and clean fuel space, in line with the company’s strategy to diversify its energy portfolio,” the company stated.
Alongside the JV announcement, IGL reported a 4.5% quarter-on-quarter rise in net profit to Rs 372 crore for the second quarter, compared with Rs 356 crore in the previous three months. The company’s revenue increased 2.8% sequentially to Rs 4,022 crore from Rs 3,913 crore, driven by steady demand across segments.
However, higher input costs weighed on margins. IGL’s EBITDA declined 13.6% to Rs 442 crore from Rs 511.7 crore in the first quarter, with margin narrowing to 11% from 13.1%.
On the bourses, shares of Indraprastha Gas closed 1.03% lower at Rs 194.01 on the NSE on Friday.
The partnership comes as India intensifies efforts to promote biofuels under its Sustainable Alternative Towards Affordable Transportation (SATAT) initiative, which aims to establish 5,000 CBG plants across the country. By entering the biogas and biofuel domain, IGL joins a growing number of city gas distributors and energy companies aligning with the government’s roadmap to curb carbon emissions, reduce reliance on imported gas, and create a circular economy through waste-to-energy conversion.
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