Gandhinagar: The Banas Bio-CNG plant model developed by Banas Dairy is emerging as a national benchmark for waste-to-energy generation and rural economic development, with around 15 states moving to adopt the initiative, according to an official press release. The project converts organic waste such as cow dung into clean fuel and organic fertiliser, creating a sustainable cycle that supports both the rural economy and environmental conservation.

₹60 crore budget provision for Bio-CNG sector

The Gujarat government has placed the Bio-CNG sector among its key priorities in the state budget, considering the vast potential of the initiative. A special provision of ₹60 crore has been allocated to support cooperative milk production societies in setting up new Bio-CNG plants.

The objective of the allocation is to develop the dairy sector as a hub for clean energy production while strengthening the rural economy. Under the scheme, the state plans to establish about 10 Bio-CNG plants in phases.

Proven model in Banaskantha

The Banas Bio-CNG plant in Banaskantha, which processes about 40 metric tonnes of cow dung per day, has been operating successfully for the past six years and is considered a proven model. Encouraged by its success, work has been taken up to establish five large Bio-CNG plants in the district. Of these, two plants are already operational, while the third plant is in the final stage of completion, said the press release.

Each plant has the capacity to process nearly 100 metric tonnes of cow dung per day using scientific methods. Built at an estimated cost of ₹50–55 crore, the plants demonstrate how modern technology can support both economic growth and ecological balance.

Additional income for livestock farmers

The Bio-CNG plants in Banaskantha source cow dung from livestock farmers within a radius of about 20 km, covering nearly 400–450 livestock farming families. Farmers are paid about ₹1 per kilogram of cow dung, creating an additional source of income.

Collection and transport activities also generate local employment, with around 13 tractor-trolleys engaged in carrying cow dung to the plant, each transporting about four metric tonnes per trip.

Multi-product revenue model

The plant operates on a multi-product economic model, generating income not only from gas but also from organic fertiliser. On average, the plant produces about 1,800 kg of compressed biogas (CNG) per day, which is sold at around ₹75 per kg. In addition, nearly 25 metric tonnes of solid organic fertiliser and about 75 metric tonnes of liquid organic fertiliser are produced daily, sold at approximately ₹6 per kg and ₹0.50 per kg respectively.

Together, these products generate more than ₹3 lakh per day, translating into an annual income of nearly ₹12 crore.

Boost to ‘Green Gujarat’ vision

As per the press release, the Bio-CNG initiative is a major step towards clean energy generation and environmental protection. The model has the potential to reduce greenhouse gas emissions by about 6,750 tonnes of carbon dioxide equivalent (CO₂e) annually.

With the combined benefits of clean fuel production, chemical-free organic fertiliser, and scientific waste management, the project is helping advance the state government’s vision of a “Green Gujarat”, extending the success of the Banaskantha model to other parts of the state and the country. DeshGujarat