Green algae represent the fastest producible source of biomass that has diverse uses as biofuel, food, feed-stocks and the like. The biomass is rich in oils, which can be used as biofuel and the cultivation may be used to purify water as well. Productivity and quality of algal biomass depends on species and strains as well as environmental conditions of growth. Therefore, identification of new species and strains as well as standardization of media composition and environmental conditions for optimum yield of specific products, especially oil has a high relevance in algal technological research. In this connection, biomass productivity and oil yield of a local strain of Chlorella lobophora in BBM and modified BBM media are compared. Chemical characterization of the oil and feasibility of biodiesel production from the extracted oil is also assessed. Biomass productivity and the lipid productivity of the alga in both the media are found to be significantly different (P < 0.05). Fatty acid profiling of the oil extracted from the dried algal biomass using GC-MS analysis reveals that Palmitic acid (16:0) and Oleic acid (18:1) are the major fatty acids and nutraceutically important fatty acids are also present. The oil can be effectively transesterified to methyl esters. FTIR spectroscopy confirms the quality of the biodiesel produced. As the potentials of this local algal strain for biomass production and oil yield is confirmed, further standardization of environment conditions for better oil yield and quality biomass production is progressing to optimize its value as globally competent nutraceutical and biofuel resource.