Chandigarh: Chandigarh is preparing to host its first compressed biogas (CBG) plant using segregated organic municipal waste, after Indian Oil Corporation Limited (IOCL) submitted a memorandum of understanding (MoU) to the Municipal Corporation (MC) for approval, reports The Tribune.
The MoU comes after the MC General House, in its August meeting, approved the proposal to award the project to a public sector company. The initiative is part of the Government of India’s SATAT (Sustainable Alternative Towards Affordable Transportation) scheme, which encourages oil companies to support the development of CBG plants across the country.
Sources said IOCL will cover both construction and operational costs, including building the plant, installing necessary utilities, and managing day-to-day operations. The plant will process wet municipal waste and cow dung to produce CBG along with by-products such as fermented organic manure and liquid fertilizers.
The project will use 10 acres of land at the Dadumajra dumping ground, with part of the area developed as a green belt. The MC will provide a daily supply of 200 tonnes of organic waste and 30 tonnes of cow dung, with additional material supplied if needed. The waste will be provided free of charge, while IOCL will pay for transporting cow dung at an agreed rate.
IOCL will design, fund, build, operate, and maintain the plant, including all associated infrastructure. Consultation and execution costs will be covered by the company. The MC will lease the land to IOCL for 15 years at ₹1 per acre per month. IOCL will also fund the development and upkeep of a green belt covering one-third of the project land, with maintenance payments made monthly to the MC.
Officials said the plant will help the city manage waste in an eco-friendly way while also contributing to energy production and environmental goals.
An IOCL spokesperson said, “This plant will turn organic waste into clean energy and useful by-products, benefiting both the environment and the city’s energy resources.”
IOCL, a Maharatna public sector company, operates across the entire oil and gas sector, including refining, transportation, marketing, and exploration.
