The Indian Federation of Green Energy (IFGE) has welcomed the Maharashtra Compressed Biogas Policy 2026, describing it as a forward-looking initiative that places the state at the forefront of India’s waste-to-energy transition.

The policy lays out a roadmap for converting organic waste into compressed biogas (CBG), while strengthening urban waste management, improving public health, and reducing greenhouse gas emissions. It empowers Urban Local Bodies (ULBs) to lead waste segregation, collection and processing, integrating CBG production with municipal solid waste systems to reduce landfill dependence and promote a circular economy.

A key feature of the policy is its focus on diverse feedstocks, including municipal solid waste, agricultural residues, livestock waste and agro-industrial by-products. This is expected to ensure a stable supply chain, create additional income opportunities for farmers and generate rural employment.

The Urban Development Department has been designated as the nodal agency for implementation. To enhance project viability, the policy provides viability gap funding of up to ₹75 lakh per tonne per day (TPD), capped at ₹15 crore per project, with a dedicated outlay of ₹500 crore for FY27. Developers will also benefit from a 2.5 per cent SGST reimbursement post-commissioning.

ULBs will facilitate concessional land allocation at 0.7 per cent of ready reckoner rates, with defined land norms ranging from one to 20 acres depending on project size. Projects must become operational within two years of allotment or risk cancellation.

The policy also ensures feedstock security through defined catchment areas and long-term agreements, while supporting Farmer Producer Organizations as waste aggregators. A single-window clearance system, PPP-based project development, and district-level facilitation cells aim to improve ease of doing business.

Aligned with national initiatives such as SATAT scheme India and GOBAR-Dhan scheme India, the policy also promotes bio-fertilizer use and establishes a three-tier monitoring framework with defined performance indicators.

Sanjay Ganjoo, Director General, IFGE, stated that the Maharashtra CBG Policy 2026 provides a strong and enabling framework for scaling up the CBG sector. He highlighted that the focus on feedstock security, cluster-based development, and utilization of agro-industrial residues will enhance project viability, support rural incomes, and promote a circular economy.

Dilip Patil, Co-Chairperson, IFGE Sugar Bioenergy Forum, noted that the policy is a significant step for strengthening the bioenergy ecosystem, particularly in agriculture- and sugar-linked regions. He emphasized that the combination of financial incentives, streamlined approvals, and institutional support will accelerate investments and project implementation, while its alignment with national initiatives strengthens its overall impact.

Published on May 7, 2026