The Maharashtra government has approved the Compressed Biogas (CBG) Policy, 2026, marking a major step toward renewable energy generation and scientific waste management. The policy was approved by the Maharashtra Cabinet under Chief Minister Devendra Fadnavis on 22 April 2026 and officially released on 5 May 2026. For the financial year 2026-27, the state has allocated ₹500 crore for implementation.
Compressed biogas is a renewable fuel produced from organic waste through anaerobic digestion and purification. Maharashtra generates nearly 24,500 metric tonnes of municipal solid waste every day along with more than 20 million metric tonnes of agricultural residue annually. The policy aims to convert this waste into clean fuel while reducing pollution and landfill pressure.
Under the new framework, Maharashtra plans to establish compressed biogas projects in every district. Each project must process at least 200 tonnes of segregated organic waste daily. The policy also makes source segregation of waste mandatory, separating organic and inorganic waste at the collection stage.
The government will implement projects through Public-Private Partnership (PPP) and hybrid annuity models. To encourage investment, the policy provides Viability Gap Funding of up to ₹75 lakh per tonne of capacity, with a maximum limit of ₹15 crore per project. Biogas plants will also receive priority electricity and water supply along with a 2.5% refund on State GST after production begins.
A steering committee headed by the Chief Secretary will supervise the policy, while district-level coordination committees will monitor local implementation. The government has also introduced strict timelines, stating that land allocation will be cancelled if a project does not become operational within two years.
The Maharashtra CBG Policy aligns with national initiatives such as SATAT, GOBARdhan, and the Swachh Bharat Mission. It also supports India’s long-term climate commitment of achieving Net-Zero emissions by 2070 through cleaner fuel production and sustainable waste management.
