The Maharashtra government approved the Compressed Biogas (CBG) Policy, 2026, with a financial outlay of ₹500 crore for FY27. Through the initiative, the state aims to convert urban waste, agricultural residue, and cattle waste into clean fuel and organic fertiliser. As a result, the policy seeks to reduce landfill burden, curb pollution, and lower dependence on fossil fuels.
Structured Feedstock Supply Mechanism
Under the policy, segregated biodegradable waste from urban areas will be channelled directly to biogas plants. Urban local bodies will take the lead in implementation, ensuring efficient waste collection and supply. In addition, agricultural residue and livestock waste will serve as critical feedstock. To address supply constraints, the government will also promote cluster-based project development in regions with limited waste availability.
PPP Model and Financial Support
To ensure scalability, the state plans to establish biogas plants with a minimum capacity of 200 tonnes per day under public-private partnership (PPP) models. Moreover, the policy includes assured payment mechanisms to enhance financial viability and attract private investment. The government will further support developers by offering land on lease and expediting approvals through a single-window clearance system.
Digital Integration and Ease of Implementation
In a move to streamline operations, Maharashtra will introduce a digital platform that connects waste generators with project developers. Consequently, this will improve supply chain efficiency and foster better coordination across stakeholders.
Environmental and Economic Impact
The policy is expected to significantly reduce waste dumping and improve air and water quality across the state. At the same time, it will generate employment opportunities and create additional income streams for farmers by enabling the productive use of agricultural waste.
As reported by projectstoday.ai, the Maharashtra CBG Policy, 2026, marks a major step toward building a circular economy. By integrating waste management with clean energy production, the state is positioning itself as a leader in sustainable and decentralised energy solutions.
