Microbial lipophilic compounds called Single cell oils (SCO), has been the object of research and industrial interest for many years, due to their specific characteristics. Such SCO products are potential for using it as alternative sources of animal or plant oils. Most of the work for single cell oil production has, so far, been performed on yeasts mainly because of their ability to accumulate a large amount of lipids intracellularly. Since, this present study aimed to isolate lipid accumulating bacteria for the production of Single cell oil (SCO). This study also focuses on to produce SCO in higher amount using various carbon sources from agro-industrial wastes.