The National Dairy Development Board (NDDB) has unveiled an ambitious plan to facilitate the establishment of 100 Compressed Biomethane Gas (CBG) plants across India, aiming to expand the production of sustainable transport fuel while creating additional income opportunities for farmers.
The initiative gains importance at a time when global geopolitical tensions in the Gulf region have raised concerns over fuel supply disruptions and higher petroleum and gas prices. CBG is being promoted as a domestic alternative to imported fossil fuels and compressed natural gas (CNG), while also supporting the production of organic fertilisers and generating value from cattle dung, Fortune India reported.
NDDB Chairman Meenesh Shah said the organisation’s immediate goal is to establish at least 100 CBG plants to increase the collection and productive use of cattle dung for biogas generation.
According to Shah, the programme seeks to convert dung into compressed biomethane gas for vehicle use, while the residual slurry generated during the process will be used to produce organic fertilisers.
The vision is based on the success of a joint initiative launched two years ago by the National Dairy Development Board, Suzuki R&D Center India and Banas Dairy.
Under the pilot project, a centralised biogas plant was established in Banaskantha district of Gujarat, where 50 to 60 metric tonnes of cattle dung are collected at a single location. The biogas produced is purified to achieve methane purity of at least 95 per cent before being compressed into CBG.
Shah said the resulting fuel offers performance comparable to CNG and described it as a highly sustainable transportation fuel option. He noted that after removing impurities such as carbon dioxide and other gases, the purified biomethane can be used effectively in vehicles.
In September 2023, NDDB, Suzuki and Banas Dairy signed a tripartite agreement to set up four dung-based biogas plants for CBG production in Banaskantha. Under the arrangement, Suzuki provides financial support, NDDB develops the facilities, and Banas Dairy operates the plants on land provided by the cooperative.
Apart from supplying clean fuel for vehicles through dedicated CBG stations, the project also focuses on converting biogas slurry into organic fertilisers, reducing dependence on imported chemical fertilisers.
Shah said three additional CBG plants with a capacity of 100 metric tonnes each have already been established in the Banas region, while two more are under construction. He added that memorandums of understanding have been signed with several dairy cooperatives and funding arrangements have been finalised to support further expansion.
The planned network of 100 CBG plants is expected to strengthen India’s bioenergy sector, promote circular use of agricultural and livestock waste, and create new revenue streams for dairy farmers while supporting the country’s clean energy goals.













