New Delhi: GAIL (India) Limited on Thursday informed the stock exchanges that the government has approved its proposal for equity participation in Leafiniti Bioenergy Private Limited, clearing a long-pending regulatory step for the investment. In a disclosure to the stock exchanges on Thursday, GAIL said the Ministry of Petroleum and Natural Gas (MoPNG) has conveyed that the Department of Investment and Public Asset Management (DIPAM) has given its concurrence to the proposal.
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“This is to inform that MoPNG vide letter dated 04.02.2026 conveyed that DIPAM vide its OM dated 22.01.2026 has conveyed their concurrence to the proposal of GAIL (India) Limited for equity participation in Leafiniti Bioenergy Private Limited,” the company said in the filing.
The approval follows GAIL’s Share Subscription-cum-Shareholders Agreement executed on August 11, 2025, which outlined the company’s proposed equity participation in Leafiniti Bioenergy, subject to statutory and government clearances.
GAIL had earlier disclosed that the investment was part of its strategy to expand into compressed biogas (CBG) and bioenergy, in line with India’s broader push to scale alternative and cleaner fuels.
Leafiniti Bioenergy operates in the bioenergy and CBG segment, which has gained policy traction under the government’s efforts to promote cleaner gaseous fuels and reduce dependence on imported fossil fuels.
For GAIL, the investment aligns with its stated objective of diversifying beyond conventional natural gas transmission and trading, and building a portfolio across renewable gas, bioenergy and low-carbon fuels. The company has been evaluating opportunities across CBG, hydrogen and other energy transition segments as part of its long-term growth strategy.
India is targeting a rapid scale-up of compressed biogas capacity as part of its wider gas-based economy push, with CBG seen as a domestically produced fuel that can be blended into the gas grid or supplied to transport and industrial consumers.
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The government approval now clears a critical hurdle for GAIL’s participation in Leafiniti Bioenergy, enabling the company to proceed with the investment framework set out in the August 2025 agreement.
