Rajat Mehrotra,
financial and economic experts
India has long been dependent on energy imports. The country imports a large part of its petroleum and natural gas requirements from abroad, resulting in billions of dollars of foreign exchange expenditure every year. Global geopolitical tensions, the Russia-Ukraine war, instability in West Asia and fluctuating energy prices have made it clear that energy self-reliance is no longer just an option but a national necessity. At such a time, a resource available in India’s villages and farms has the potential to change the country’s energy picture—dung and other organic waste.
Bio-CNG or Compressed Bio Gas (CBG) is a clean fuel that is prepared from organic materials like cow dung, agricultural residues, pressmud of sugar mills, municipal organic waste and sewage sludge. It is similar to conventional CNG in terms of quality and usage and can be used in vehicles, industries and gas distribution networks. India is among the countries with the largest livestock population in the world. Apart from this, a huge amount of agricultural residues and organic waste is generated every year in the country. If these resources are used scientifically, not only the production of clean energy can be increased, but environmental problems can also be solved.
The Central Government had launched SATAT (Sustainable Alternative Towards Affordable Transportation) scheme in the year 2018. The objective of this initiative is to promote bio-CNG production from organic waste and develop it as an alternative to imported natural gas. The government’s long-term goal is to set up about 5,000 CBG plants across the country and develop an annual production capacity of 15 million metric tonnes.
According to public information available as of January 2026, there are about 132 operational CBG plants in the country, with a combined production capacity of about 920 tonnes per day. This number is still much lower than the government’s long-term target, but this difference also shows the huge possibilities for the future. The biggest benefit of Bio-CNG can come in the form of foreign exchange savings.
India imports large quantities of LNG and natural gas. If bio-CNG production is scaled up on a large scale, there will be less dependence on imported gas and foreign exchange savings, although the actual amount of savings will depend on international gas prices and production levels, but experts believe that in the long run this savings could reach billions of dollars.
This initiative is not limited to the energy sector only. This is an economic opportunity for rural India also. Farmers can earn additional income from the sale of cow dung and agricultural residues. The digestate left after biogas production is an excellent organic fertilizer, which can help reduce dependence on chemical fertilizers. This increases the possibility of reducing agricultural costs and improving soil quality. Bio-CNG is also very important from environmental point of view.
Open rotting of dung and organic waste emits large amounts of methane gas, which is considered a more potent greenhouse gas than carbon dioxide. When these same wastes are used in biogas production, methane can be converted into energy. This reduces pollution, increases cleanliness and strengthens India’s efforts against climate change, although the challenges are no less. Collection, transportation and processing of cow dung and other organic waste is a complex process.
It is not easy to collect sufficient quantities of feedstock from small farmers and dispersed livestock. Additionally, setting up plants also requires capital investment, technical proficiency, long-term arrangements for gas procurement and infrastructure such as pipelines and distribution networks. Positive efforts in this direction have started in many states of India.
Indore Bio-CNG plant in Madhya Pradesh, various CBG projects operated in Punjab, Haryana, Gujarat, Maharashtra and Karnataka and models developed under Gobardhan Mission demonstrate the potential of this sector. Private sector and startup companies are also increasing investment in this sector.
Today, when India is trying to strike a balance between energy security, environmental protection and rural development, Bio-CNG is emerging as a technology that can fulfill all these three objectives simultaneously. Cow dung and organic waste need to be viewed as a resource rather than a problem.
If the government, industry, farmers and local bodies together take effective steps in this direction, then in the coming years India can not only touch new heights in clean energy production, but can also take important steps towards a strong and self-reliant economy by reducing dependence on foreign energy. In fact, Bio-CNG is not just a fuel but can become a symbol of India’s journey from ‘Waste to Wealth’ to ‘Waste to National Wealth’. (These are the personal views of the author)
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