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Maharashtra Clears Compressed Biogas Policy, Allocates Rs 500 Crore

May 2, 2026
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Maharashtra Clears Compressed Biogas Policy, Allocates Rs 500 Crore Mumbai, May 2 (KNN) The Maharashtra Cabinet this week approved the Maharashtra Compressed Biogas (CBG) Policy, 2026, aimed at establishing CBG projects in every district through Public-Private Partnership (PPP) and hybrid annuity models. An allocation of Rs 500 crore has been made for the current financial year.

The policy seeks to promote scientific disposal of solid waste and reduce greenhouse gas emissions by converting biodegradable waste into clean energy. The decision was taken at a Cabinet meeting chaired by Chief Minister Devendra Fadnavis. Addressing Waste Burden and Energy Gap According to the Urban Development Department, Maharashtra generates around 24,500 tonnes of municipal solid waste daily, of which 50–60 percent is biodegradable. The growing waste burden has increased pressure on landfill sites and contributed to environmental pollution. Additionally, nearly 20 million metric tonnes of agricultural residue is burnt or left unused annually, further impacting air quality and soil health. The state also faces a significant energy gap, with natural gas demand estimated at around 50 Million Metric Standard Cubic Meters per Day (MMSCMD) against a supply of 8–9 MMSCMD, leading to dependence on imports. Circular Economy, Jobs and Implementation Framework Officials said the policy aims to promote CBG as an alternative fuel, reduce reliance on fossil fuels, and support sustainable waste management. It also focuses on developing a circular economy model by converting waste into CBG and organic fertiliser, while creating additional income opportunities for farmers. The initiative is expected to generate employment in both rural and urban areas and attract investments through PPP mechanisms. A steering committee chaired by the Chief Secretary will oversee implementation. Projects will be developed using suitable technologies to ensure adequate CBG production, with an emphasis on integrating waste management systems with energy generation. The policy also aims to strengthen the role of local bodies in waste segregation, collection, and processing, reducing landfill burden and improving environmental outcomes. (KNN Bureau)

KNN India
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