Patna: Hindustan Petroleum Corporation Limited (HPCL) is planning to establish a ₹159 crore Compressed Biogas (CBG) plant at Kankaithi in Bhagalpur, Bihar, to convert municipal organic waste into renewable fuel and organic manure. The proposed facility will have the capacity to process 135 tonnes of segregated wet waste per day, supporting sustainable waste management and clean energy production.
The memorandum of understanding (MoU) between HPCL and Bhagalpur Municipal Corporation is nearing finalisation. A high-level team from the municipal corporation is expected to visit Patna to complete the agreement process.
The project is part of Bihar’s initiatives to improve urban solid waste management and promote the utilisation of organic waste for renewable energy generation.
HPCL’s ₹159 Crore CBG Plant to Process 135 Tonnes of Waste Daily
The proposed compressed biogas plant will be established at the Kankaithi dumping ground in Bhagalpur, with a daily processing capacity of 135 tonnes of segregated organic waste.
The facility will process wet waste collected from various sources, including:
- Households
- Hotels and restaurants
- Vegetable markets
- Fruit markets
The collected organic waste will be converted into compressed biogas and organic manure.
The compressed biogas produced at the facility can be used as an alternative to conventional Compressed Natural Gas (CNG) in vehicles and other suitable applications. Meanwhile, the organic manure generated during the process can be utilised in agricultural activities.
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HPCL to Invest ₹159 Crore in Construction and Operations
Under the proposed agreement, Bhagalpur Municipal Corporation will provide 10 acres of land at the Kankaithi dumping ground complex to HPCL free of cost for a period of 25 years.
The land will remain under the ownership of Bhagalpur Municipal Corporation throughout the agreement period.
HPCL will be responsible for the project’s investment and execution, including:
- Capital expenditure for the construction of the CBG plant.
- Installation of machinery and other required equipment.
- Operational expenditure during the agreed 25-year period.
- Maintenance and operation of the facility.
At the end of the 25-year agreement, HPCL will hand over the fully operational plant to Bhagalpur Municipal Corporation without any additional cost.
Bhagalpur Municipal Corporation to Provide Infrastructure Support
Bhagalpur Municipal Corporation will be responsible for arranging the essential infrastructure required for the construction and operation of the proposed CBG plant.
The supporting infrastructure will include:
- Approach road connectivity.
- Electricity connection.
- Water supply.
- Sewerage facilities.
- Surface water drainage arrangements.
The Bihar Urban Infrastructure Development Corporation (BUIDCO) is expected to coordinate the technical assessment and cost estimation of the infrastructure requirements.
HPCL’s Bhagalpur CBG Project to Boost Waste-to-Energy Initiatives in Bihar
The proposed ₹159 crore CBG plant is expected to strengthen Bhagalpur’s municipal waste-processing capacity while supporting renewable energy production. By processing 135 tonnes of organic waste daily, the facility will help reduce the accumulation of wet waste at dumping grounds and convert it into commercially useful products, including compressed biogas and organic manure.
The project will also provide Bhagalpur Municipal Corporation with an opportunity to develop a large-scale waste-processing facility without bearing the primary construction and operational expenditure. The finalisation of the MoU between HPCL and the municipal corporation, along with the completion of infrastructure-related preparations, will determine the next steps towards project implementation.
About Hindustan Petroleum Corporation Limited (HPCL)
Hindustan Petroleum Corporation Limited (HPCL) is a Maharatna Central Public Sector Enterprise (CPSE) operating under the Ministry of Petroleum and Natural Gas, Government of India. The company is engaged in refining, marketing and distribution of petroleum products, including petrol, diesel, LPG and lubricants. HPCL is also expanding its presence in renewable energy and alternative fuels, including compressed biogas, as part of its efforts to support India’s clean energy transition.
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