The Indian Federation of Green Energy (IFGE) welcomes the Government of Maharashtra’s Compressed Biogas (CBG) Policy 2026, a progressive and well-structured initiative that positions the state at the forefront of India’s waste-to-energy transition. The policy provides a clear roadmap for converting organic waste into clean energy while strengthening urban waste management systems, enhancing public health, and reducing greenhouse gas emissions, it stated in a press release.
By empowering Urban Local Bodies (ULBs) to drive waste segregation, collection, and processing, the policy integrates CBG production with municipal solid waste management, thereby reducing landfill dependency and promoting a circular economy. Its emphasis on utilizing diverse feedstocks—including municipal waste, agricultural residues, livestock waste, and agro-industrial by-products—ensures a reliable and sustainable raw material base while creating additional income streams for farmers and generating rural employment.
Key Highlights – Maharashtra CBG Policy 2026
· Urban Development Department shall act as the Nodal Department for implementing this policy.
- Promotion of CBG production from diverse feedstocks including municipal solid waste, agricultural residues, livestock waste, and agro-industrial by-products
- Strong focus on integration with municipal solid waste management systems to reduce landfill burden and improve urban sanitation
- Provision of Viability Gap Funding (VGF) up to ₹75 lakh per TPD, with a cap of ₹15 crore per project and a dedicated ₹500 crore budget (FY 2026–27)
- 2.5% SGST reimbursement post commissioning to enhance project viability
- Concessional land allocation through ULBs at 0.7% of Ready Reckoner rate, with defined land norms and lease conditions If the project is not operational within 2 years of land allotment, the lease allotment shall be cancelled.
- Land allocation for CBG projects shall be approximately 1 acre per ton of capacity. However, total land shall be a minimum of 1 acre and a maximum of 20 acres.
- Classification of CBG projects as priority infrastructure, ensuring access to electricity, water, and essential utilities
- Establishment of single-window clearance mechanism and district-level facilitation cells for ease of doing business
- The policy ensures feedstock security through defined catchment areas, long-term supply agreements, and support to Farmer Producer Organizations (FPOs), thereby addressing one of the key challenges in the sector.
· Facilitating Farmer Producer Organizations or cooperative societies to act as waste aggregators for CBG projects. Generally, there should be one aggregator per Panchayat Samiti level.
- Promotion of Public-Private Partnership (PPP) models and competitive bidding frameworks for project development
· Developers will be selected competitively based on the segregated waste processing fee they are willing to charge the ULB per ton of segregated waste.
- Creation of CBG clusters and hubs in high biomass availability regions
- Alignment with national schemes such as SATAT, GOBAR-Dhan, Swachh Bharat Mission, and National Bioenergy Mission
· Encouragement of by-product utilization (bio-fertilizers): For the sale and use of bio-fertilizer produced from CBG projects, distribution through registered sale centers via the Agriculture Department will be prioritized.
· Key Performance Indicators (KPIs) based on project efficiency, gas production, waste processing, and carbon emission reduction will be defined.
· Establishment of a three-tier institutional framework (State, Executive, District) for effective implementation and monitoring
Sanjay Ganjoo, Director General, IFGE, stated that the Maharashtra CBG Policy 2026 provides a strong and enabling framework for scaling up the CBG sector. He highlighted that the focus on feedstock security, cluster-based development, and utilization of agro-industrial residues will enhance project viability, support rural incomes, and promote a circular economy.
Dilip Patil, Co-Chairperson, IFGE Sugar Bioenergy Forum, noted that the policy is a significant step for strengthening the bioenergy ecosystem, particularly in agriculture- and sugar-linked regions. He emphasized that the combination of financial incentives, streamlined approvals, and institutional support will accelerate investments and project implementation, while its alignment with national initiatives strengthens its overall impact.
