The Biogas Boom: Maharashtra’s ₹500 Crore Sustainability Bet

The Maharashtra Cabinet has approved the Compressed Biogas (CBG) Policy, 2026, with a budget allocation of ₹500 crore for 2026–27. The policy aims to transform urban waste, agricultural residue, and cattle waste into clean fuel and organic fertiliser, supporting the state’s transition toward sustainable energy.

The initiative focuses on reducing landfill pressure, lowering pollution levels, and cutting reliance on fossil fuels. Under the policy, segregated biodegradable waste from urban areas will be channelled to biogas plants, with urban local bodies spearheading implementation. Agricultural residue and livestock waste will serve as additional feedstock, while cluster-based projects will be developed in regions with limited resource availability.

To scale up production, the state plans to establish biogas plants with a minimum capacity of 200 tonnes per day through public-private partnership models. These projects will be backed by assured payment mechanisms to enhance financial viability. The government will also facilitate land availability on lease, streamline approvals through a single-window clearance system, and introduce a digital platform to link waste suppliers with project developers.

Officials believe the policy will significantly reduce waste dumping, improve air and water quality, create employment opportunities, and provide farmers with additional income through better utilisation of agricultural residue—contributing to a cleaner, more resilient energy ecosystem in Maharashtra.

News by Rahul Yelligetti.