Chhattisgarh to become a new hub of clean energy, Council of Ministers approves CG-CBG Policy 2026
Green energy will be generated from agricultural residues, dung and organic waste, increasing farmers' income and providing new impetus to investment.
Another important step towards developed Chhattisgarh under the leadership of Chief Minister Shri Vishnudev Sai
Raipur: The Council of Ministers, chaired by Chief Minister Vishnudev Sai, today approved the Chhattisgarh Compressed Biogas (CG-CBG) Policy 2026. This policy will prove to be an important initiative in giving a new direction to clean energy, green industrialization, agriculture-based economy and environmental protection in the state.
Chhattisgarh has the potential to produce approximately 1.65 lakh metric tons of compressed biogas (CBG) annually from agricultural and crop residues, paddy straw, animal dung, livestock waste, municipal solid waste, pressmud, sugarcane residue, and energy crops such as Napier. This will boost clean energy production in the state and reduce dependence on traditional fossil fuels.
Effective implementation of the new policy will enable the supply of approximately 216,000 tons of fuel equivalent to petrol and diesel annually through CBG. This will not only save foreign exchange but also strengthen the country's energy self-sufficiency.
Chief Minister Shri Vishnudev Sai stated that this policy will bring new opportunities for Chhattisgarh's farmers, cattle herders, and the rural economy. Better utilization of agricultural residues and organic waste will increase farmers' additional income and create new employment and entrepreneurship opportunities in rural areas.
The use of organic manure, a by-product of CBG plants, will promote natural and organic farming. This will reduce dependence on chemical fertilizers, preserve soil fertility, and promote sustainable agriculture.
This policy will also play a key role in moving the state towards green development and a climate-resilient economy. The use of CBG will reduce greenhouse gas emissions and enable Chhattisgarh to effectively contribute towards the national goal of net-zero emissions.
This policy is in line with the SATAT (Sustainable Alternative Towards Affordable Transportation) initiative launched by the Government of India to promote sustainable and affordable transportation. This initiative by Chhattisgarh will significantly contribute to the national clean energy efforts.
The policy will also benefit the developing city gas distribution network and gas infrastructure in the state. This will develop a strong ecosystem for CBG production, distribution, and utilization, and provide better opportunities for investors.
The Chhattisgarh Biofuel Development Authority (CBDA) is actively pursuing initiatives in the CBDG sector starting in 2024. CBDG plants are currently being established at eight locations, including Raipur, Durg-Bhilai, Bilaspur, Rajnandgaon, Dhamtari, Ambikapur, Raigarh, and Korba, with investments from BPCL and GAIL India Limited. Land allocation for all these projects has been completed.
The private sector has also shown significant interest in the CBDG industry in the state, with investment proposals worth approximately ₹3,600 crore received. The implementation of the new policy will further boost the potential for large-scale investment, job creation, and industrial development in this sector.
The policy, approved by the Council of Ministers, has six key pillars – basic infrastructure support, feedstock supply chain strengthening, plant establishment and operation support, biofertilizer management and supporting infrastructure development, CBG demand creation and integration in the transportation sector, and investment promotion and industry development.
Chhattisgarh Biofuel Development Authority (CBDA) has been designated as the state nodal agency for effective implementation of the policy.
Chief Minister Shri Vishnudev Sai said that this policy will prove to be a milestone in establishing Chhattisgarh among the country's leading states in the fields of clean energy production, green industry, organic agriculture, and sustainable development. This initiative will provide new energy to the resolve to build a developed Chhattisgarh.
