Gujarat govt allocates Rs 60 cror to set up new bio-CNG plants through cooperatives

Gandhinagar: A sum of Rs 60 crore was allocated in the 2026-27 state budget to set up new bio-CNG plants through milk cooperative societies, the govt said on Thursday.An official statement said that plans have been drawn to set up 10 bio-CNG plants in a phased manner across the state. Organic waste like cow dung, agriculture waste and food waste is converted into compressed biogas, which has applications as fuel in transportation and industrial fuel, the statement added.The statement said that the Banas bio-CNG plant model in Banaskantha district is now being adopted by nearly 15 states across the country through the joint efforts of the Union jal shakti and cooperation ministries.The statement said that the project, being implemented by Banas Dairy, converts organic waste into clean energy and organic fertilisers. The plant has a daily processing capacity of 40 metric tonnes of dung and has been operational for the past six years.The govt said that five more bio-CNG plants were sanctioned in Banaskantha district, of which two became operational and work is on for a third. Each plant processes about 100 metric tonnes of dung per day, the statement said. Farmers are paid Re 1 per kilogramme of dung, which provides additional income to about 500 animal husbandry farmers, the statement added.Under this model, approximately 1,800 kilogrammes of compressed biogas (CNG) is produced daily and made available in the market at around Rs 75 per kilogramme, it said. The statement added that about 25 metric tonnes of solid organic fertiliser and 75 metric tonnes of liquid organic fertiliser are produced daily, and these are sold at Rs 6 per kilogramme and Rs 0.50 per kilogramme respectively, generating a daily revenue of Rs 3 lakh for the plant.