Gandhinagar: The Gujarat government has proposed to widen the scope of cooperative societies beyond traditional activities by enabling them to undertake multi-purpose operations, including grain storage and production of green fuel.

Presenting the Budget 2026-27, Finance Minister Kanubhai Desai announced a ₹112 crore provision to support the initiative, under which Bio-CNG plants will be set up in four zones of the state through the cooperative sector.

From storage to energy production

Officials said cooperative institutions will be allowed to diversify operations, ranging from agricultural storage infrastructure to processing of cattle waste for fuel generation. The move aims to strengthen rural economic systems by adding new income streams for village-level organisations.

Benefit to livestock farmers

The proposed Bio-CNG plants will use cattle dung and organic waste to produce compressed biogas. The government expects the initiative to:

• provide supplementary income to animal husbandry farmers

• create local employment in rural areas

• supply environmentally friendly fuel for vehicles

• reduce dependence on conventional fossil fuels

Rural economy and green transition

By linking cooperatives with renewable energy production, the state aims to combine rural livelihood support with clean-energy goals. Authorities indicated the model will integrate agriculture, dairy and energy sectors, creating a circular rural economy while promoting greener transport fuel.

The ₹112-crore allocation marks a step toward expanding the cooperative movement into value-added and sustainability-focused activities across Gujarat. DeshGujarat