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Lignocellulosic biomass based fuels are also better in terms of controlling emission of greenhouse gasses which has been the centre of discussion worldwide. However, the physico-chemical techniques available to separate lignin from other components or the techniques for lignin modifications are costly and also not eco-friendly. Lignin oxidizing enzymes are produced in copious amount by fungi but the practical application of fungi in industries is not possible due to various factors. Lignin peroxidase producing bacteria C7 was isolated from soil near to the woody area and effects of physical and chemical mutagen on the production of lignin peroxidase was carried out in which. Later the small-scale optimization was performed and effect on activity and productivity by cloning was also studied.