New Delhi: GAIL (India) Limited announced that the government has approved its equity participation in Leafiniti Bioenergy Private Limited, clearing a key regulatory step in the company’s strategic foray into bioenergy and compressed biogas (CBG). The approval was communicated by the Ministry of Petroleum and Natural Gas (MoPNG), with the Department of Investment and Public Asset Management (DIPAM) giving its concurrence.
Background of the Transaction
The approval follows the Share Subscription-cum-Shareholders Agreement executed on August 11, 2025, which outlined GAIL’s proposed equity investment in Leafiniti Bioenergy, subject to statutory and government approvals.
The investment is part of GAIL’s broader strategy to expand into cleaner fuels, including CBG and bioenergy, aligning with India’s push for alternative and sustainable energy sources.
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Strategic Fit with GAIL’s Energy Transition Plans
Leafiniti Bioenergy operates in the bioenergy and compressed biogas segment, a sector receiving strong policy support from the government to promote cleaner fuels and reduce reliance on imported fossil fuels.
For GAIL, the investment:
- Diversifies its portfolio beyond conventional natural gas transmission and trading
- Strengthens its position in renewable gas, bioenergy, and low-carbon fuels
- Supports long-term growth strategies in CBG, hydrogen, and other energy transition segments
Compressed Biogas and India’s Energy Goals
India is targeting rapid expansion of CBG capacity to create a gas-based economy, with domestically produced CBG:
- Blended into the existing gas grid
- Supplied to industrial and transport sectors
The government approval now allows GAIL to proceed with its investment framework under the August 2025 agreement, marking a significant step in its clean energy transition roadmap.
About GAIL
GAIL (India) Limited is India’s largest natural gas company, engaged in gas transmission, trading, and distribution. The company is also expanding into renewable energy, biofuels, and low-carbon solutions to support India’s energy transition and sustainability goals.
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