Gandhinagar, March 26 The Gujarat government has allocated ₹60 crore to establish new bio-CNG plants through cooperative milk production societies, an official said on Thursday.
Under the leadership of Chief Minister Bhupendra Patel, the objective of this budget allocation is to transform the dairy sector into a hub for clean energy production and to make the rural economy self-reliant, a release said.
"A phased plan has been proposed to establish around 10 bio-CNG plants across the state. A bio-CNG plant converts organic waste, such as cow dung, agricultural residues, and food waste, into purified compressed biogas used for transportation and industrial fuel," it said.
Aligned with the vision of Prime Minister Narendra Modi on 'Waste to Wealth', Aatmanirbhar Bharat, and green energy, Gujarat's development model has emerged as a national benchmark, the release added.
The Banas bio-CNG plant model in Banaskantha district is now being adopted by nearly 15 states across the country through the joint efforts of the Union Ministry of Jal Shakti and the Union Ministry of Cooperation, it said.
"This project, developed by Banas Dairy, is transforming the rural economy by converting organic waste such as cow dung into clean fuel and organic fertilizer. The Banas bio-CNG plant, with a daily processing capacity of 40 metric tonnes of dung, has been successfully operational for the past six years," the release said.
Inspired by its success, work is underway to set up five large bio-CNG plants in Banaskantha, of which two are operational and the third is in the final stage of completion.
"Each plant scientifically processes approximately 100 metric tonnes (1 lakh kilograms) of dung per day. Built at an estimated cost of ₹50-55 crore, these plants exemplify modern technology and infrastructure, showing how ecology and economy can advance together, supporting environmental conservation, enhancing farmer prosperity, and driving industrial growth simultaneously," the release said.
The bio-CNG plant in Banaskantha covers farmers' families from around 20-25 villages within a radius of approximately 20 kilometres, who regularly supply dung, as per the release.
Farmers are paid ₹1 per kilogram of dung, which provides additional income to nearly 400-450 families engaged in animal husbandry, it said.
"About 13 tractor-trolleys are used for the collection and transportation of cow dung, each with a capacity of about 4 metric tonnes per trip, thereby generating employment and boosting local economic activities in rural areas. The plant operates on a diversified revenue model based on multiple products, meaning income is generated not only from gas but also from fertilizers and other by-products," the release said.
Under this model, approximately 1,800 kilograms of compressed biogas (CNG) is produced daily and made available in the market at around ₹75 per kilogram, it said.
"About 25 metric tonnes of solid organic fertilizer and 75 metric tonnes of liquid organic fertilizer are produced, sold at approximately ₹6 per kilogram and ₹0.50 per kilogram, respectively. Together, these three products generate a daily revenue of over ₹3 lakh for the plant, which can reach approximately ₹12 crore annually," it added.
This model has the capacity to reduce approximately 6,750 tonnes of CO2e (carbon dioxide equivalent) greenhouse gas emissions annually, reflecting Gujarat's significant contribution in addressing the global challenge of climate change, the release noted.