Banas Bio-CNG model gains national traction; Gujarat allocates ₹60 crore for expansion

The Gujarat government has allocated ₹60 crore in the State budget to promote Bio-CNG plants, as the Banas Bio-CNG model emerges as a scalable waste-to-energy initiative and gains adoption across the country.

Developed by Banas Dairy in Banaskantha district, the model converts cattle dung and other organic waste into compressed biogas (Bio-CNG) and organic fertilisers. The initiative is being taken up by nearly 15 States through the Union Ministries of Jal Shakti and Cooperation.

The State government plans to set up around 10 Bio-CNG plants in phases through cooperative milk societies. The initiative aims to integrate clean energy production with the dairy sector while providing additional income opportunities in rural areas.

The existing plant in Banaskantha has been operational for six years with a daily processing capacity of 40 metric tonnes of dung. New plants are designed to handle about 100 metric tonnes per day, with an estimated cost of ₹50–55 crore each. Of the five plants planned in the district, two are operational and one is nearing completion.

The plants source dung from 20–25 villages within a 20-km radius, covering around 400–450 animal husbandry families. Farmers are paid ₹1 per kg of dung, generating a steady supplementary income. Transport and collection activities also support local employment.

Each plant produces about 1,800 kg of Bio-CNG daily, along with 25 metric tonnes of solid and 75 metric tonnes of liquid organic fertilisers. The combined output generates over ₹3 lakh in daily revenue, with annual earnings estimated at around ₹12 crore per plant.

The project is expected to reduce carbon emissions by approximately 6,750 tonnes annually, contributing to the State’s clean energy targets.