Maharashtra approved the Compressed Biogas (CBG) Policy, 2026 on 22 April 2026. The policy has an initial outlay of Rs 500 crore for the financial year 2026-27. It covers the conversion of urban waste and farm residue into compressed biogas and organic fertiliser.
Compressed Biogas
Compressed biogas is a renewable gaseous fuel produced from organic matter through anaerobic digestion. It is upgraded to a methane-rich fuel and can be used as a substitute for compressed natural gas in transport and industrial applications. The by-product from biogas plants is digestate, which is used as manure or soil conditioner.
Policy Coverage and Project Model
- The policy provides for CBG projects in all districts of Maharashtra.
- The projects will be implemented through Public-Private Partnership and hybrid annuity models.
- Each project must have a minimum capacity of 200 tonnes of segregated organic waste per day.
- The policy includes district-level coordination committees for execution and monitoring.
Administrative Structure
The cabinet meeting was chaired by the Chief Minister, Devendra Fadnavis. A steering committee chaired by the Chief Secretary will oversee implementation. Such committees are used in state-level schemes for inter-departmental coordination and project monitoring.
Environmental and Economic Context
CBG projects are linked with municipal solid waste management and agricultural residue management. They are also associated with landfill reduction, lower fossil fuel dependence, greenhouse gas mitigation, and bioenergy investment. The policy also includes employment generation in rural and urban areas.
Related Static Facts
- India has a National Bioenergy Programme that supports biogas, biomass, and waste-to-energy projects.
- Organic waste segregation at source is a key requirement for biogas feedstock management.
- Hybrid annuity model is a project financing structure used in infrastructure development in India.