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Dindigul District · ₹292 Crore · MNRE Flagship · AIG Direct LLC, USA

Palani — the MNRE 'Flagship Project' and the most de-risked plant in the portfolio.

The Ministry of New and Renewable Energy has declared Palani a national 'Flagship Project' for quality — a rare recognition that makes it a priority candidate for SIGHT VGF, PLI benefits and fast-track clearances. AIG Direct LLC (USA) has signed a Term Sheet for the full two-phase project — the first US FDI into Tamil Nadu's distributed green energy sector.

MNRE Flagship13.2 TPD Biogas3.2 TPD Green H₂24 TPD Dry IceAIG Direct LLC, USA
₹292 Cr
Total — Phase 1 ₹162 Cr (CBG + Dry Ice) + Phase 2 ₹130 Cr (Green H₂)
500 acres
Self-cultivated Napier Grass — zero supply risk, carbon-negative operations
Dual offtake
Sicgil (LOI + Offtake Agreement, dry ice) · Mega Engineering (LOI, methane)
200–250
Direct + agricultural jobs
Phased build-out

Phase 1 CBG & Dry Ice, Phase 2 Green Hydrogen

ParameterPhase 1Phase 2
Biogas production13.2 TPD13.2 TPD (continued)
Green Hydrogen—3.2 TPD
Cryogenic Dry Ice24 TPD (food-grade)32 TPD
FeedstockGiant King Napier Grass — 500 acres self-cultivatedSame
Investment₹162 Cr₹130 Cr additional
OfftakeSicgil (dry ice) · Mega Engineering (methane)Expanded
Recognitions & investment case

Three pillars of de-risking

Why Palani leads

  • MNRE Flagship status opens SIGHT VGF, PLI benefits and fast-track clearances under all MNRE-administered schemes.
  • AIG Direct LLC Term Sheet signed for the full ₹292 Cr two-phase project, with active discussions to invest across all Yogan projects.
  • Two confirmed revenue streams before commissioning — dry ice and methane offtake independently secured.
  • Self-cultivated feedstock — 500 dedicated acres deliver feedstock security, cost predictability and a net-positive carbon balance.

Support sought

  • Land: 500 acres for Napier cultivation at Andipatti via TIDCO/SIPCOT.
  • Clearances: single-window via Guidance Tamil Nadu; TANGEDCO power connectivity.
  • Incentives: capital subsidy & SGST reimbursement under TN Industrial Policy 2021; MNRE SIGHT VGF & PLI benefits.
  • FDI: facilitation support for the AIG Direct LLC (USA) Term Sheet.

Support sought from the Government of Tamil Nadu & Guidance Tamil Nadu — items are requests within the ₹1,453 Cr investment proposal submitted to the Hon'ble Chief Minister of Tamil Nadu.

The Palani project report and AIG term-sheet summary are available on request

Phase-wise CAPEX, MNRE Flagship documentation, offtake agreements and the financing structure.

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