The Maharashtra Cabinet has approved the Maharashtra State Compressed Biogas (CBG) Policy 2026, marking a significant push toward sustainable energy and scientific waste management. Chaired by Devendra Fadnavis, the decision aims to convert organic waste into clean fuel while advancing India’s circular economy and climate goals.
The policy earmarks ₹500 crore for FY 2026–27 to support project developers through Public-Private Partnership (PPP) and the Hybrid Annuity Model (HAM). This funding is intended to reduce investment risks and accelerate the rollout of large-scale CBG plants across Maharashtra.
A key focus is addressing the state’s mounting waste challenge. Maharashtra’s 423 urban local bodies generate substantial volumes of municipal solid waste daily, much of it organic and often dumped in landfills. The policy mandates strict source segregation to ensure wet waste is diverted to scientific processing facilities. This not only reduces landfill burden and methane emissions but also ensures a steady supply of feedstock for biogas production.
The policy outlines several objectives, including boosting energy self-reliance by expanding CBG use in transport, industry, and households; reducing greenhouse gas emissions in line with India’s net-zero ambitions; and strengthening scientific waste management systems. It also explores integrating agricultural residues, such as Napier grass, to supplement feedstock supply, particularly in regions like Marathwada.
A notable feature is the introduction of the Hybrid Annuity Model, under which the government shares project costs with private developers through periodic payments. The ₹500-crore outlay will act as viability gap funding, offering financial stability amid uncertainties in feedstock availability and market linkages.
To ensure effective implementation, a state-level steering committee led by the Chief Secretary will oversee coordination, while district committees headed by collectors will manage land allocation and waste supply. The policy also promotes cluster mapping, enabling smaller municipalities to pool resources and support centralised CBG plants.
Aligned with the GOBARdhan initiative, the policy integrates byproducts like organic manure into agriculture, creating a “waste-to-wealth” cycle. If executed well, it could generate jobs, reduce environmental stress, and position Maharashtra as a leader in India’s waste-to-energy sector.
Published on April 24, 2026