Union Minister for Road Transport and Highways Nitin Gadkari on Friday advised sugar factories to gradually move away from co-generation power projects and focus more on producing compressed biogas (CBG), saying electricity generated from such projects may become less viable in the future.
Speaking at the inauguration of the two-day Compressed Biogas Conference 2026 organised by the Indian Federation of Green Energy at YASHADA in Pune, Gadkari said the rapid growth of solar power has made electricity produced by sugar mills comparatively expensive.
He said sugar factories may face difficulties selling electricity from co-generation plants once their existing power purchase agreements end. In view of this, he urged mills to begin shifting towards compressed biogas production in time to avoid future problems.
Gadkari said green fuels such as CBG could help protect the environment while also strengthening the rural economy by creating more opportunities for farmers and generating employment.
“The Centre wants to expand the green energy sector so that agriculture-led growth can benefit farmers and create more jobs,” he said.
The conference was attended by leaders from the bioenergy and sugar industries, including Pramod Chaudhari, president of the Indian Federation of Green Energy; Annasaheb Patil; Y. B. Ramakrishna; Member of Parliament Dr. T. Krishna Prasad; managing director of Verbio India Ashish Kumar; and co-chairman of the IFGE Sugar Bioenergy Forum Dilip Patil.
Speaking at the event, Praj Industries chairman Pramod Chaudhari said compressed biogas is likely to play an important role in India’s future energy mix. He said the technology allows energy to be produced from agricultural waste that might otherwise go unused.
Chaudhari also said modern tools such as artificial intelligence should be introduced in the sector. According to him, sugar mills should aim to become integrated bio-refineries and work towards emerging as global exporters of bio-energy products.
Gadkari also spoke about India’s dependence on imported energy. He said the country imports nearly 86 percent of its energy requirements, costing around Rs 22 lakh crore every year. He added that some vested interests linked to energy imports may oppose the rapid expansion of domestic energy production.
Despite this, Gadkari said he would continue efforts to promote local energy sources and strengthen the country’s energy self-reliance.
