Praj Industries Limited, a global leader in sustainable solutions, has announced a strategic partnership with Bharat Petroleum Corporation Limited (BPCL) to form a Joint Venture Company (JVC) aimed at setting up Compressed Bio Gas (CBG) plants across India.
The Board of Directors of Praj Industries approved the formation of the JV at a meeting held today, outlining a 50:50 shareholding structure between the two companies. The new venture will focus on the construction, operation, and maintenance of CBG plants throughout India, in addition to the sale of CBG and its derivatives.
Details of the Joint Venture
The partnership with BPCL will see both companies collaborating on the establishment of CBG plants, with each partner holding an equal stake in the venture. The authorized share capital of the JV will be finalized in due course, and the exact consideration for share subscriptions will be decided at the time of signing the definitive agreement.
The JV will leverage Praj’s advanced CBG technology, alongside BPCL’s widespread distribution network and expertise in the energy sector. This venture is expected to contribute significantly to the growth of India’s bioenergy market, promoting the use of cleaner, renewable energy.
Key Aspects of the Agreement:
- Entities Involved: Bharat Petroleum Corporation Ltd. (BPCL)
- Scope of JV: The joint venture will construct, operate, and maintain CBG plants across India, including the sale of CBG and its derivatives.
- Shareholding: The JV will have an equal partnership, with both Praj and BPCL holding 50% stakes.
- Consideration: The final consideration for share subscriptions will be determined at the signing of the definitive agreement.
- Rationale: The JV aims to facilitate the commercialization of Praj’s advanced CBG technology, addressing the growing demand for sustainable energy solutions in India.
This collaboration marks a significant step forward for both Praj Industries and BPCL, further reinforcing their commitment to sustainable practices and driving innovation in the renewable energy space. The JV is expected to play a pivotal role in India’s energy transition by promoting the adoption of biofuels and reducing the nation’s carbon footprint.
