IndianQil & Praj to form JV for building Biofuels production capacities in India

In a significant development today, Indian Oil Corporation Limited (IndianOil) and Praj Industries Limited (Praj) signed a term sheet to advance plans to strengthen biofuels production capacities in India. Various biofuels covered under this MoU include Sustainable Aviation Fuel (SAF), Ethanol, Compressed Bio-Gas (CBG), Biodiesel and Bio-bitumen among others. Earlier in October 2021, both the Companies had entered into an agreement to form a 50:50 Joint Venture to this end.

Talking about the development, Mr. Shrikant Madhav Vaidya, Chairman, IndianOil, said, "The collaboration with an Indian biofuel major - Praj, is a remarkable milestone in IndianQil's green energy transition journey. It will strengthen our resolve to achieve our goal of net-zero operational emissions by 2046 and maintain our leadership in the green energy domain."

Mr Vaidya also added that India being an agrarian economy, offers the advantage of sufficient availability of feedstock. The indigenous biofuels will be a game changer in helping India chart its decarbonization journey. Biofuels offer a win-win situation by reducing dependence on crude imports, boosting the rural economy, and offering sustainable, cleaner mobility options.

Dr. Pramod Chaudhari, Founder Chairman, Praj Industries said, "We are proud of our partnership with IndianOil, which is further reinforced with this important milestone. Biofuels positively impact the socio-economic and environmental aspects thereby facilitating sustainable development. Readying India to build sustainable aviation fuels production capacity in pursuit of clean skies is our priority, to strengthen Atmanirbhar Bharat."

In pursuit of energy self-reliance by leveraging captive resources, the country has aggressive plans to reconfigure the transportation fuel mix with biofuels. Biofuels are an integral part of India's flourishing Bioeconomy that plays a significant role as a sustainable climate action tool.

IndianOil & Praj have been collaborating to facilitate India's energy transition towards a greener future in the past as well. The nation's first-of-its-kind advanced biofuels refinery at IndianOil's Panipat complex is based on Praj's proprietary 2 G technology. This year in May, IndianQil and Praj partnered with AirAsia India and flew India's first-ever commercial passenger flight powered by a blend of 'indigenous' Sustainable Aviation Fuel.

Shares of Indian Oil Corporation Limited was last trading in BSE at Rs. 98.60 as compared to the previous close of Rs. 95.52. The total number of shares traded during the day was 3026578 in over 15577 trades.

The stock hit an intraday high of Rs. 98.84 and intraday low of 96.00. The net turnover during the day was Rs. 297369175.00.

Shares of Praj Industries Limited was last trading in BSE at Rs. 370.55 as compared to the previous close of Rs. 369.05. The total number of shares traded during the day was 43255 in over 2061 trades.

The stock hit an intraday high of Rs. 379.10 and intraday low of 368.05. The net turnover during the day was Rs. 16118051.00.

Source : Equity Bulls

Keywords

IndianOilCorporation INE242A01010 IOC PrajIndustries INE074A01025 TermSheet Biofuels India ProductionCapacity