Instructions Issued to Collectors by the Urban Administration Department
BPCL and GAIL Company to Set Up Plants in Eight Bodies Including Raipur and Bhilai
Raipur, May 12, 2025 / On the initiative of Chief Minister Shri Vishnu Deo Sai, Bio-CNG plants will be set up in all urban bodies of Chhattisgarh for the processing of bio-waste cum agricultural waste. Land has been identified in eight bodies including Raipur and Bhilai. BPCL and GAIL will set up plants worth ₹800 crore at these locations.
It is noteworthy that in the cabinet meeting held on April 17, 2025, under the chairmanship of Chief Minister Shri Vishnu Deo Sai, it was decided to allot land to public sector undertakings for Bio-CNG plants at a concessional rate of ₹1 per square meter. Following the Cabinet’s decision, the Urban Administration Department has issued instructions to all collectors regarding land allotment.
BPCL and GAIL Company will be given 10 acres of land at the rate of ₹1 per square meter on a 25-year lease. The processing of bio-waste cum agricultural waste will be done in these plants.
Approximately 46 percent of the CNG used in India is currently imported, and the government aims to reduce this dependence through the production and consumption of Bio-CNG. Bio-CNG, also known as Bio Compressed Natural Gas, is primarily used as fuel for vehicles and as domestic energy. Additionally, it can be used for fueling CNG vehicles, as an alternative to LPG for cooking and heating, for electricity generation, and for heating and other processes in some industries.
The Union Ministry of New and Renewable Energy estimates that India has the potential to produce approximately 70 million metric tons of Bio-CNG. Its production is in line with market demand, making it economically viable.
What is Bio-CNG?
Bio-CNG is produced by breaking down organic waste materials such as animal waste, food waste, and industrial sludge into biogas and digestate. This process takes place in a sealed, oxygen-free tank, also known as an anaerobic digester. The biogas is then processed, resulting in 95 percent pure methane gas. This process yields high-quality concentrated liquid fertilizer.
Tender Process to Commence Within a Month
According to the Urban Administration Department, land has been identified at eight locations in the state. The tender process for this will begin soon. After finalizing the tender within a month, work will commence. The construction process will then begin.