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Corporate News - Detailed News Back
GAIL to acquire 49% stake in Leafiniti Bioenergy (arm of TruAlt Bioenergy)
19-Mar-26   20:09 Hrs IST

TruAlt Bioenergy today announced a strategic investment of Rs 13 crore by GAIL (India) in its subsidiary, Leafiniti Bioenergy (LBPL), marking a significant step in advancing its Compressed Biogas (CBG) portfolio and strengthening its role in India's energy transition.

This investment is pursuant to the Share Subscription-cum-Shareholders' Agreement executed on 11 August  2025, under which GAIL is set to acquire 49% equity stake in Leafiniti. Under the terms of the agreement, GAIL will invest an aggregate amount of Rs 13,54,32,150 (Rs 13 crore) towards subscription of equity shares in Leafiniti, with the capital to be deployed towards new CBG projects.

Post completion of the transaction, TruAlt will retain a stake of 51%, while GAIL will hold 49% equity, reflecting a balanced and strategic partnership structure. The investment is aligned with defined project approvals and governance mechanisms, ensuring disciplined capital allocation and phased scale-up of the clean gas portfolio.

The collaboration represents a significant milestone in India's clean energy roadmap, combining TruAlt's expertise in bioenergy production with GAIL's extensive gas infrastructure and market reach. The joint venture will focus on establishing multiple greenfield CBG plants across Karnataka, Maharashtra, and Odisha, as part of a phased rollout designed to scale rapidly and deliver measurable environmental, economic, and social impact.

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.

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