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Maharashtra

India’s 1st Cooperative-Run Compressed Bio-Gas Project Launched

  • 08 Oct 2025
  • 2 min read

Why in News? 

Union Home and Cooperation Minister Amit Shah has inaugurated India’s first cooperative-based Compressed Bio-Gas (CNG) and Spray Dryer Potash Granule Project at the Sahakar Maharshi Shankarrao Kolhe Cooperative Sugar Factory in Kopargaon, Ahilyanagar district of Maharashtra. 

  • He announced that similar units will be established in 15 cooperative sugar factories across the country, with Maharashtra expected to play a leading role. 

India’s 1st Cooperative-Run Compressed Bio-Gas Project Launched

Key Points 

  • About: The plant will produce 12 tons of CBG daily and 75 tons of potash from jaggery/molasses, reducing imports.  
  • Compressed Biogas (CBG): It is a renewable fuel produced from biomass and organic waste (agricultural residue, cattle dung, sugarcane press mud, sewage) via anaerobic decomposition (breakdown of organic matter by bacteria in the absence of oxygen). 
  • Properties: Similar calorific value (amount of energy released on complete combustion) to CNG. CBG can replace CNG in automotive, industrial, and commercial sectors. 
  • CBG Benefits: 
    • Eco-Friendly: Cleaner alternative to fossil fuels, supporting India’s target of net zero emissions by 2070. 
    • Waste Management: Converts organic waste into fuel, reducing pollution and promoting a circular economy. 
    • Energy Security: Reduces oil imports and increases the share of natural gas in India’s energy mix (currently ~6%, targeted 15% by 2030). 
  • India’s Initiatives: 
    • SATAT (Sustainable Alternative Towards Affordable Transportation) Scheme: Aims to produce CBG by utilising 62 Million Metric Tonnes of annual waste, thereby reducing import dependence, generating jobs, and lowering vehicular emissions and pollution.  
    • National Cooperative Development Corporation (NCDC): Plans to support 15 sugar mills via NCDC for CBG and potash units. 
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