A term sheet was signed by Indian Oil Corporation Limited (Indian Oil) and Praj Industries Limited (Praj) to advance efforts to increase India's capacity for producing biofuels, which is a significant development.

The Sustainable Aviation Fuel (SAF), Ethanol, Compressed Bio-Gas (CBG), Biodiesel, and Bio-bitumen are only a few of the different biofuels covered by this MoU.

The two companies had already agreed to create a 50:50 joint venture earlier in October 2021.

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."

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.