GAIL join forces with ethanol leader to invest USD 72 million in India’s green future

About joint venture 

GAIL (India) Limited, the country’s leading natural gas company, and truAlt Bioenergy Limited, the largest producer of ethanol in India, have signed a Term Sheet for GAIL’s equity participation in TruAlt’s joint venture company Leafinti Bioenergy Limited which owns and operates India’s second Compressed Bio Gas (CBG) plant.

TruAlt Bioenergy and GAIL India’s shareholding in the JV would be 51% and 49%, respectively. The Investment in setting up the CBG plants will exceed USD 72 million and will be funded through a combination of debt and equity. However, this will be subject to favourable outcomes of due diligence and requisite approvals.

The JV company will process over 600 million kgs of organic waste like agricultural residue, sugarcane press mud, spent wash (waste generated during ethanol production), and other decomposable waste per annum, to produce over 33 million kgs of CBG, nearly 20 million kgs of Solid Fermented Organic Manure (SFOM) and over 30 million kgs of Liquid Fermented Organic Manure (LFOM) per annum.

Share Price Movement 

GAIL (India) Limited is currently trading at Rs 161.80, down by 2.05 points or 1.25% from its previous closing of Rs 163.85 on the BSE. The scrip opened at Rs 164,35 and has touched a high and low of Rs 164,35 and Rs 160.80, respectively. The BSE group ‘A’ stock of face value of Rs 10 has touched a 52-week high of Rs 169.35 and a 52-week low of Rs 91.

About the company 

Incorporated in 1984, GAIL, a Government of India undertaking, is an integrated natural gas company in India. It owns over 11,500 km of natural gas pipelines, over 2300 km of LPG pipelines, six LPG gas-processing units and a petrochemicals facility. It also has a joint-venture interest in Petronet LNG Ltd, Ratnagiri Gas and Power Pvt Ltd, and in the CGD business in several cities. GAIL has wholly owned subsidiaries in Singapore and the US for expanding its presence outside India in the segments of LNG, petrochemical trading and shale gas assets.

TruAlt Bioenergy through its wholly owned subsidiary, Leafiniti Bioenergy Limited owns and operates India’s 2nd CBG plant that was established under the Sustainable Alternative Toward Affordable Transportation (SATAT) scheme in the year 2021.

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