A series of experiments were carried out with three native strains of microalgae to measure growth rates, biomass, and lipid productivities. Scenedesmus sp. IMMTCC-6 had better biomass growth rate and higher lipid production. The growth, lipid accumulation, and carbon dioxide ($CO_2$) consumption rate of Scenedesmus sp. IMMTCC-6 were tested under different NaOH concentrations in modified BBM. The algal strain showed the maximum specific growth rate (0.474/day), biomass productivity (110.9 mg $l^{-1}d^{-1}$), and $CO_2$ consumption rate (208.4 mg $l^{-1}d^{-1}$) with an NaOH concentration of 0.005 M on the $8^{th}$ day of cultivation. These values were 2.03-, 6.89-, and 6.88-fold more than the algal cultures grown in control conditions (having no NaOH and $CO_2$). The $CO_2$ fixing efficiency of the microalga with other alternative carbon sources like $Na_2CO_3$ and $NaHCO_3$ was also investigated and compared. The optimized experimental parameters at shake-flask scale were implemented for scaling up the process in a self-engineered photobioreactor. A significant increase in lipid accumulation (14.23% to 31.74%) by the algal strain from the logarithmic to stationary phases was obtained. The algal lipids were mainly composed of $C_{16}/C_{18}$ fatty acids, and are desirable for biodiesel production. The study suggests that microalga Scenedesmus sp. IMMTCC-6 is an efficient strain for biodiesel production and $CO_2$ biofixation using stripping solution of NaOH in a cyclic process.