Raipur: Chhattisgarh is set to become a major hub for clean energy production as the state plans to generate 1,65,000 metric tonnes of Compressed Biogas (CBG) annually, according to the Chhattisgarh Biofuel Development Authority (CBDA). The initiative is expected to save approximately ₹1,188 crore in foreign exchange by reducing dependence on imported fossil fuels.
CBDA CEO Sumit Sarkar said the large-scale CBG production will be achieved using agricultural residues, cattle dung, municipal waste, sugarcane by-products, and energy crops like Napier grass.
Massive Fuel Substitution and Energy Output Potential
Officials estimate that the planned CBG production will be equivalent to 2,16,810 tonnes of petrol and diesel annually, significantly strengthening India’s clean energy ecosystem.
Key highlights include:
- Annual CBG production: 1,65,000 metric tonnes
- Fuel equivalence: 2,16,810 tonnes of petrol/diesel
- Estimated forex savings: ₹1,188 crore per year
- Major reduction in fuel import dependency
The initiative is seen as a strategic step amid global energy disruptions and fuel supply concerns.
Boost to Farmers’ Income and Rural Economy
The project is also expected to directly benefit rural communities. Officials estimate that farmers’ income could increase by around ₹16.50 crore annually through the sale of agricultural waste, paddy straw, and biomass materials.
Benefits for rural economy include:
- Additional income from crop residue
- Use of waste for energy generation
- Promotion of organic fertiliser production
- Strengthening of circular rural economy
The by-product from CBG plants will also support organic farming practices across the state.
Environmental Gains and Net-Zero Push
CBDA officials highlighted that the initiative will significantly reduce greenhouse gas emissions and support Chhattisgarh’s long-term net-zero emission goals.
Environmental benefits include:
- Reduction in carbon emissions
- Cleaner waste management systems
- Increased production of bio-fertilizers
- Promotion of sustainable energy usage
The initiative aligns with India’s broader clean energy transition strategy.
Support Under National SATAT Initiative
The CBG expansion is aligned with the Government of India’s Sustainable Alternative Towards Affordable Transportation (SATAT) initiative, which promotes large-scale production and use of alternative fuels.
Officials said CBG is becoming a key component of India’s strategy for:
- Clean energy transition
- Circular economy development
- Reduced dependence on fossil fuels
- Sustainable transportation solutions
Major Investment Pipeline and Infrastructure Development
Chhattisgarh is witnessing strong investor interest in the sector, with private investments worth approximately ₹3,600 crore already proposed.
Key developments include:
- CBG plants planned in 8 districts:
Bhilai, Raipur, Bilaspur, Rajnandgaon, Dhamtari, Ambikapur, Raigarh, and Korba - Participation of BPCL and GAIL India Limited
- Land already allocated for multiple projects
- Expansion of City Gas Distribution (CGD) network
New CG-CBG Policy 2026 Approved
The state cabinet, chaired by Chief Minister Vishnu Deo Sai, has approved the Chhattisgarh Compressed Biogas Policy 2026, aimed at accelerating clean energy development and attracting investments.
The policy focuses on six key pillars:
- Infrastructure development support
- Feedstock supply chain management
- Plant setup and operational assistance
- Bio-fertilizer ecosystem development
- CBG demand generation and transport integration
- Investment promotion and industrial growth
Officials said the policy will strengthen long-term sustainability and investor confidence in the sector.
About Chhattisgarh’s Clean Energy Push
The Chhattisgarh government is actively promoting compressed biogas production as part of its clean energy and rural development strategy under Chief Minister Vishnu Deo Sai. The initiative aims to convert agricultural and organic waste into sustainable fuel, boost farmer incomes, reduce pollution, and position the state as a leading green energy hub in India.
