Chhattisgarh plans to produce 1,65,000 metric tons of Compressed Biogas (CBG) annually, saving Rs 1,188 crore in foreign exchange. The move will boost farmer income, promote organic farming, and help the state achieve net-zero emissions.
Chhattisgarh's Major Push for Compressed Biogas
At a time when various nations are dealing with fuel scarcity due to the crisis in West Asia, Chhattisgarh is gearing up to produce 1,65,000 metric tons of Compressed Biogas (CBG), resulting in a saving of foreign exchange to the tune of around Rs 1,188 crore.
Chief Executive Officer (CEO) of Chhattisgarh Biofuel Development Authority (CBDA), Sumit Sarkar, speaking to ANI, said that, "Chhattisgarh has a maximum potential to produce 1,65,000 metric tonnes of CBG annually from agricultural and crop residues, cattle dung and livestock waste, municipal solid waste, sugarcane waste and crops like Napier grass. This will enable the state to supply CBG equivalent to 2,16,810 tonnes of fuel (petrol/diesel) annually, resulting in foreign exchange savings of approximately Rs 1,188.00 crore."
The CEO further elaborated that the income of farmers in Chhattisgarh is expected to increase by approximately Rs 16.50 crore annually from agricultural waste, paddy straw, and other biomass. Moreover, organic farming will also be promoted through the organic fertiliser obtained as a by-product from CBG plants. Greenhouse gas emissions will reduce significantly due to CBG, and eventually, the environment will become cleaner. The use of CBG will propel the state towards achieving the target of net-zero emissions.
Policy Framework and Implementation
To encourage the large-scale implementation of CBG, the Government of India has launched various programs under the Sustainable Alternative Towards Affordable Transportation (SATAT) initiative, said the officer, elaborating that CBG has emerged as a key component of the national strategy to promote clean energy and a circular economy.
According to Sarkar, the state is set to benefit from the developing gas infrastructure, which includes various City Gas Distribution (CGD) networks that encourage the utilisation of Compressed Biogas. CBDA, which has been authorised as the State Nodal Agency for the execution of this policy, has been working in the field of CBG since 2024. Under CBDA, the processes to set up Compressed Biogas plants are currently underway in eight districts, including Bhilai, Raipur, Bilaspur, Rajnandgaon, Dhamtari, Ambikapur, Raigarh and Korba, with capital investments from Bharat Petroleum Corporation Limited (BPCL) and GAIL India Limited (GAIL). Moreover, land has already been allotted for all these projects.
As per the information received from officials of CBDA, the state has also received investment proposals of approximately Rs 3,600 crore in the CBG sector from private investors and enterprises. Aligning with national efforts to scientifically convert diverse bio-resources available in Chhattisgarh into clean gaseous fuel suitable for industrial and commercial use, the Chhattisgarh Compressed Biogas (CG-CBG) Policy, 2026 was approved in the cabinet meeting chaired by Chief Minister Vishnu Deo Sai on June 23, informed Sarkar and further added that the implementation of this policy will ensure the long-term expansion, sustainability, and investor confidence in Chhattisgarh's CBG infrastructure.
Notably, the cabinet of Chhattisgarh has approved the draft of 'Chhattisgarh Compressed Biogas Policy' (CG-CBG Policy)-2026, aimed at scientifically managing agricultural residue, municipal solid waste, livestock waste and other organic resources available in the state and converting them into clean gaseous fuel in the form of compressed biogas (CBG). The policy is expected to promote efficient waste management, environmental conservation, reduction in greenhouse gas emissions, production of bio-fertiliser, and revitalisation of the rural economy.
Six Pillars of the New Policy
He further added that the six pillars of the policy are basic infrastructure support, feedstock supply chain, plant setup and operational support, bio-fertiliser management and supporting infrastructure development, CBG demand generation and integration of the transportation sector and promotion to investment and development. (ANI)
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