Unable to connect to Grafana Image Renderer

Hi,

Grafana is not able to connect to Image renderer, I see the below errors in grafana server logs

lvl=dbug msg="calling remote rendering service" logger=rendering renderer=http url=http://127.0.0.1:8081/render/version
t=2022-01-19T23:34:54+0000 lvl=eror msg="Failed to send request to remote rendering service" logger=rendering renderer=http error="Get \"http://127.0.0.1:8081/render/version\": dial tcp 127.0.0.1:8081: connect: connection refused"
t=2022-01-19T23:34:54+0000 lvl=info msg="Couldn't get remote renderer version" logger=rendering renderer=http err="failed to send request to remote rendering service: Get \"http://127.0.0.1:8081/render/version\": dial tcp 127.0.0.1:8081: connect: connection refused"

Below is the config in grafana.ini for rendering

[rendering]
server_url = http://127.0.0.1:8081/render
callback_url = http://127.0.0.1:3000
concurrent_render_request_limit = 30

Although, it works if i pass the above fields as environmental variables. Running on Grafana v8.1.8 and latest version of grafana-image-renderer. Any help will be really appreciated, thank you.