Mumbai: The Maharashtra Cabinet on Wednesday approved the Maharashtra Compressed Biogas (CBG) Policy, 2026, with the objective to set up compressed biogas projects in every district through Public-Private Partnership (PPP) and hybrid annuity models. An allocation of Rs 500 crore has been made for the current financial year. The initiative aims to enable scientific disposal of solid waste and significantly reduce greenhouse gas emissions. The meeting was chaired by Chief Minister Devendra Fadnavis.
According to the Urban Development Department, nearly 50 per cent of Maharashtra is urbanised. The state generates about 24,500 tonnes of municipal solid waste daily, of which 50–60 per cent is biodegradable. The rising volume of waste has put pressure on dumping grounds and contributed to environmental pollution. The problem is exacerbated by large-scale burning of agricultural residue. Each year, nearly 20 million metric tonnes of such residue is either burnt or left unused, leading to severe air pollution and declining soil fertility.
At the same time, the state faces a widening energy gap. Demand for natural gas is estimated at around 50 Million Metric Standard Cubic Meters per Day (MMSCMD), while supply remains limited to 8–9 MMSCMD, resulting in continued dependence on imports and added pressure on foreign exchange.
“The policy seeks to promote clean energy by reducing dependence on fossil fuels and lowering carbon emissions, while positioning CBG as a viable alternative fuel. It also focuses on sustainable waste management through effective utilisation of biodegradable waste and aims to curb open burning,” an official said.
A key component of the policy is the development of a circular economy model, converting waste into resources such as CBG and organic fertiliser. This is expected to address environmental concerns while providing an additional income stream for farmers. The policy is also aimed at generating employment in rural and urban areas and attracting investment through the PPP route.
Mr. Fadnavis said the policy would facilitate environmentally sound disposal of urban waste, reduce problems arising from waste accumulation, and curb pollution of water sources.
An official from the Chief Minister’s Office said approval has also been granted to set up projects using appropriate technology to ensure adequate availability of CBG. A steering committee, chaired by the Chief Secretary, will oversee implementation. Projects will be executed under PPP and hybrid annuity models, with a focus on converting waste into energy and fertiliser, generating employment and strengthening local economies.
The policy also seeks to empower local self-government bodies to manage segregation, collection, processing and conversion of urban waste into clean energy, while integrating CBG production with solid waste management systems. This is expected to reduce the burden on landfill sites, improve public health and enhance environmental quality by lowering greenhouse gas emissions.
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