GAIL and BPCL signs agreement with Chhattisgarh Government to produce compressed biogas plants

The Chhattisgarh Biofuel Development Authority signs an agreement with State-runs, GAIL (India), and Bharat Petroleum Corporation (BPCL) for producing compressed biogas (CBG) from urban solid waste of six municipal corporations across the state.

According to state government officials, there is an immense potential for producing biofuel such as CBG from urban solid waste under the Sustainable Alternative Towards Affordable Transportation scheme in Chhattisgarh.

To explore the possibility, a tripartite agreement was signed by the CBDA, GAIL, and BPCL for setting up CBG plants in municipal corporations of Ambikapur, Raigarh, Korba, Bilaspur, Rajnandgaon, and Dhamtari.

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While GAIL will set up plants in Ambikapur, Raigarh, and Korba, BPCL will execute the agreement in Bilaspur, Dhamtari, and Rajnandgaon, the officials said. Through the deal, about 350 metric tonnes (Mt) of solid waste per day and nearly 500 Mt of surplus biomass from the six municipal corporations will be used for biofuel production in the plants.

These plants will produce about 70 Mt of CBG per day, the officials said. GAIL and BPCL will invest about Rs 600 crore. Similarly, the state will receive a goods and services tax of about Rs 6 crore per year from the production and sale of the plants, the officials added.

The project will promote organic farming from the co-product generated from the plants. Effective disposal of waste will reduce greenhouse gas emission and the state will move towards achieving net zero emission.

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