New Delhi: Oil India Limited (OIL) has signed a Memorandum of Understanding (MoU) with the Municipal Corporation of Delhi (MCD) to establish two Compressed Bio-Gas (CBG) plants using segregated organic municipal solid waste generated in the national capital.
The MoU was signed on July 30, 2026, in the presence of Delhi Chief Minister Rekha Gupta and Delhi Mayor Pravesh Wahi, along with senior officials from the Delhi government, MCD and Oil India.
The partnership aims to combine waste management with renewable energy production by converting biodegradable municipal waste into clean fuel.
Oil India and MCD Plan Two CBG Plants in Delhi
Under the initial phase of the agreement, two Compressed Bio-Gas plants are planned in Delhi.
The proposed facilities include:
- 500 tonnes per day (TPD) capacity plant
- 300 tonnes per day (TPD) capacity plant
Together, the two plants are expected to produce around 30 to 32 tonnes of Compressed Bio-Gas per day.
The facilities will use segregated organic municipal solid waste generated in Delhi as feedstock, helping convert urban waste into a useful source of renewable energy.
Project to Support Waste Management and Clean Energy
The initiative is expected to address two key urban challenges — municipal waste management and the need for cleaner energy.
By processing biodegradable waste into CBG, the project aims to:
- Reduce dependence on landfills.
- Improve urban sanitation and waste management.
- Convert organic waste into renewable green fuel.
- Help reduce greenhouse gas emissions.
- Support the development of a circular economy.
- Strengthen the availability of alternative clean energy sources.
The project is also expected to demonstrate how waste generated in densely populated urban areas can be converted into commercially useful renewable fuel.
Partnership Aligns with Government’s Clean Energy Goals
The Oil India-MCD partnership supports several key initiatives and goals of the Government of India, including the Swachh Bharat Mission, Sustainable Alternative Towards Affordable Transportation (SATAT) and the country’s Net Zero target.
The project aligns waste management with clean energy generation and supports India’s broader energy transition.
By promoting the use of organic municipal waste as a feedstock for CBG production, the initiative can contribute to reducing the environmental impact of waste disposal while creating an alternative source of clean fuel.
Oil India Expands Waste-to-Energy Portfolio
The MoU marks another step in Oil India’s efforts to expand its presence in the clean energy and waste-to-energy space.
The partnership with MCD provides the company with an opportunity to participate in urban renewable energy infrastructure while supporting sustainable municipal waste management.
The initiative also reflects a broader shift towards circular economy solutions, where waste materials are processed and converted into useful resources such as renewable fuel.
The successful development of the plants could also provide a model for similar waste-to-energy projects in other urban centres across India.
About Oil India Limited
Oil India Limited is a Maharatna Central Public Sector Enterprise (CPSE) under the Ministry of Petroleum and Natural Gas, Government of India. The company is engaged in the exploration, production and transportation of crude oil and natural gas and is also expanding its portfolio into renewable and clean energy solutions. Its initiatives in areas such as waste-to-energy and Compressed Bio-Gas reflect its focus on supporting India’s energy transition and circular economy goals.
