IGL enters JV with CEID for biofuel projects, to jointly build CBG plants

Indraprastha Gas Ltd (IGL) has entered into a joint venture agreement with CEID Consultants & Engineering Private Ltd to set up compressed biofuel and compressed biogas (CBG) projects, the company said in a stock exchange filing.

The equity participation in the new entity will be split equally, with both partners holding 50% each.

According to the disclosure, the JV’s board will initially comprise four directors — two nominated by IGL and two by CEID — and aims to build and operate biofuel assets as India scales up clean-energy infrastructure. The agreement does not fall under related-party transactions and carries no special rights beyond equal shareholding.

Shares of IGL closed 2.4% lower at ₹194.20 on Tuesday ahead of the announcement.

Also Read: Indraprastha Gas Q2 net profit rises sequentially amid margin woes

The move aligns with IGL’s broader diversification push. In Q2, the city gas distributor reported a 4.5% sequential rise in net profit to ₹372 crore, supported by steady demand, even as operating profit softened due to higher input costs.Revenue grew 2.8% quarter-on-quarter to ₹4,022 crore, while EBITDA fell to ₹442 crore and margins slipped to 11%.