Wholly owned subsidiary secures large-scale EPCOM contract from BPCL for CBG plant in Karnataka

Wholly owned subsidiary Solapur Bioenergy Systems has secured a large-scale EPCOM contract from BPCL for a CBG plant at Hubli-Dharwad, Karnataka.

Mon 12 Oct 2026

Order Size Band

Rs. 50-100 Crore

Execution Timeline

15 months from the Letter of Acceptance

O&M Period

5 years of operation and maintenance from commissioning

Large-scale EPCOM order from BPCL

• The order has been secured by Solapur Bioenergy Systems Private Limited, a wholly owned subsidiary, from Bharat Petroleum Corporation Limited (BPCL).
• It is an EPCOM contract — Engineering, Procurement, Construction, Operation and Maintenance — for setting up an organic municipal solid waste-based CBG plant at Hubli-Dharwad, Karnataka.
• The company places it in the large-scale band of Rs. 50-100 Crore.
• The awarding entity is domestic, the promoter/promoter group has no interest in the entity that awarded the order, and the order is not a related party transaction.

Timeline and scope

• Execution within 15 months from the date of the Letter of Acceptance, in accordance with the terms in the Letter of Acceptance and applicable tender documents.
• Thereafter, 5 years of operation and maintenance from commissioning.

Four BPCL orders in a month

• The press release accompanying the intimation refers to a fourth large-scale BPCL order in a month, for plants in Mysuru (Karnataka), Raipur (Chhattisgarh), Kozhikode (Kerala) and Hubli (Karnataka).
• Together these add up to roughly 20 TPD of aggregate CBG processing capacity.
• The release notes the company's scale remains modest relative to the sector's national ambitions, with the four new BPCL plants adding under 20 TPD.

Policy backdrop cited in the release

• The mandatory CBG blending obligation scales from 1% to 5% by FY29.
• The Union Budget 2026-27 introduced an excise duty exemption on the biogas portion of blended CNG.
• The Ministry of New and Renewable Energy offers central financial assistance of up to ₹10 crore per plant.
• Oil marketing companies including BPCL, IOCL and HPCL typically back CBG plants with 15-year offtake agreements once commissioned.
• The SATAT programme has driven more than 1,200 letters of intent for new CBG plants as of mid-2026.

Other points from the disclosure

• The company has also secured a renewal of its O&M contract for a separate CBG plant in Gorakhpur with IOCL.
• Management commentary: the EPCOM structure is described as deliberately different from a plain-vanilla EPC contract, folding construction and five years of O&M into a single contract with a single counterparty; once plants move into the O&M phase, that revenue is described as contracted and annuity-like rather than tied to a single construction cycle.
• Company background: founded in 2008, listed on the BSE SME platform in 2023, with two patents and 5+ proprietary technologies; its CBG plants are built on its patented DRYAD anaerobic digestion technology. The company has stated its intention to transition to the BSE Main Board by October 2026.

What this disclosure tells an investor

• The size band of Rs. 50-100 Crore frames the scale of the contract within the company's own order classification, and the 15-month build plus 5-year O&M term frames how the work and revenue are spread over time.
• The order adds to the company's BPCL relationship alongside an existing O&M relationship with IOCL, giving it operating links with two state oil marketing companies.

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