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Maharashtra Unveils Compressed Biogas Policy to Turn Waste into Green Energy

The Maharashtra Cabinet approved the 'Maharashtra State Compressed Biogas Policy 2026' to transform urban waste and agricultural residue into clean renewable fuel. The policy aims to address the state's 24,500 metric tonnes of daily municipal solid waste and over 20 million tonnes of annual agricultural residue. It includes financial incentives like Rs 500 crore Viability Gap Funding and up to Rs 10 crore subsidy per project, with implementation through PPP models. The policy aligns with national schemes like SATAT and GOBARdhan to boost CBG production for industrial, transport, and domestic use.

Key Points: Maharashtra's CBG Policy: Waste to Green Energy

  • Policy approved to convert 24,500 MT daily waste & 20M tonnes agri residue into biogas
  • Mandates waste segregation & cluster projects for smaller cities
  • Rs 500 crore VGF proposed; projects get up to Rs 10 crore subsidy
  • Aligns with SATAT, GOBARdhan, Swachh Bharat Mission
2 min read

Maha unveils Compressed Biogas Policy to transform waste into green energy

Maharashtra Cabinet approves Compressed Biogas Policy 2026 to convert urban waste & agricultural residue into clean fuel, targeting Net-Zero 2070.

"The policy aims to tackle the rising challenges of urban waste and agricultural residue by converting them into clean, renewable fuel. - Government Release"

Mumbai, April 22

In a move towards sustainable waste management and energy self-reliance, the Maharashtra Cabinet chaired by Chief Minister Devendra Fadnavis on Wednesday approved the 'Maharashtra State Compressed Biogas Policy 2026.'

The policy aims to tackle the rising challenges of urban waste and agricultural residue by converting them into clean, renewable fuel.

Maharashtra currently generates approximately 24,500 metric tonnes of municipal solid waste daily from 423 urban local bodies. Despite a large portion being organic, very little is currently converted into compost or biogas, leading to severe air pollution and groundwater contamination at landfills.

Additionally, over 20 million metric tonnes of agricultural residue are burned or wasted annually in the state. The new policy seeks to bridge this gap by mandating the source segregation of waste into organic and inorganic categories, said the government release.

The policy is designed to achieve multiple environmental and economic goals. The policy proposes to increase CBG production for industrial, transport, and domestic use, contribute to India's 2070 Net-Zero carbon emission target, boost investment, entrepreneurship, and employment within the bioenergy sector and utilise Napier grass on wetlands and fallow lands in Marathwada for high methane yield.

To ensure financial viability, CBG projects require at least 200 tonnes of segregated organic waste per day. Consequently, the small urban local bodies will be grouped into clusters to support collective projects, with an aim to establish one project per Taluka.

Farmer Producer Organisations (FPOs) will supply supplementary raw materials like sugarcane residue, soybean waste, and livestock manure. A dedicated portal and mobile app will connect developers, farmers, and waste collectors.

According to the Cabinet decision, the Urban Development Department will serve as the state-level nodal agency, overseeing tenders and financial viability. A State-Level Steering Committee, chaired by the Chief Secretary, and District Committees, led by District Collectors, will manage approvals and land allocation.

The state government has proposed a provision of Rs 500 crore for Viability Gap Funding for the 2026-27 period. Projects can receive up to Rs 10 crore in subsidies based on capacity.

Projects will be implemented via Public-Private Partnership or Hybrid Annuity Modes. Local bodies will provide tipping fees per ton of waste, and the state will ensure priority electricity and water supply to these units. The policy remains synchronised with national schemes like SATAT, GOBARdhan, and the Swachh Bharat Mission.

- IANS

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Reader Comments

S
Sneha F
This is a brilliant policy! As someone who lives in Mumbai, the stench from Deonar dumping ground is unbearable. Converting 24,500 tonnes of daily waste into biogas is a game-changer. But I'm concerned about the source segregation mandate—will the common Mumbaikar actually separate wet and dry waste? The BMC needs to run massive awareness campaigns, not just issue fines. 👍
J
James A
Impressive policy framework! The integration with SATAT and GOBARdhan schemes shows good coordination with central govt. However, I'm skeptical about the 'one project per Taluka' target—do we have enough segregated waste in rural areas? Also, the tipping fee model could become a burden on local bodies if not priced correctly. Still, a step in the right direction for Net Zero 2070. 🌍
R
Rohit L
As a farmer from Vidarbha, I'm happy to see agricultural residue being addressed. Every year we burn soybean and sugarcane waste, and it's heartbreaking. But the 200 tonnes per day requirement for CBG plants is too high for many talukas—smaller farmers will struggle to supply that much. Why not have smaller, decentralized units? Also, FPOs are great, but they need better infrastructure. Hope the portal and app are user-friendly!
K
Kavya N
Excellent policy on paper, but let's talk about the elephant in the room—land allocation. District Collectors managing approvals could lead to delays and corruption. Also, what about the informal waste pickers? They're the backbone of recycling in India. The policy should explicitly include them in the value chain, not just FPOs and developers. Otherwise, we'll create a new set of problems while solving old ones. 🤔

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