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India’s first cooperative multi-feed CBG plant starts in Maharashtra, producing 12 tonnes of biogas and 75 tonnes of potash daily to boost farmers’ income and green energy.
India’s first cooperative CBG plant launched in Ahilyanagar.
Produces 12 tonnes of biogas and 75 tonnes of potash daily.
Built at ₹55 crore in a sugar factory complex.
Farmers to earn more by selling crop residues.
Govt to fund 15 more sugar mills for similar projects.
India has taken a major step toward achieving self-reliance in green energy and increasing farmers’ income with the commissioning of the country’s first cooperative multi-feed compressed biogas (CBG) plant. The plant, located in the Ahilyanagar district of Maharashtra, is expected to transform agricultural waste into clean energy and valuable fertilizers, offering multiple benefits to farmers and the environment alike.
The newly commissioned multi-feed CBG plant will produce 12 tonnes of compressed biogas (CBG) and 75 tonnes of potash per day. This initiative provides a double advantage for farmers. They can earn extra income by selling their crop residues and benefit from affordable potash fertilizers, reducing overall farming costs.
According to experts, the use of natural fertilizers will help improve soil quality and reduce dependency on chemical inputs. The biogas produced will also serve as a clean alternative to diesel-based power sources, improving rural energy access.
The CBG plant has been set up within the Maharshi Shankarrao Kolhe Cooperative Sugar Factory complex in Kopargaon, Ahilyanagar. The project, developed at a cost of ₹55 crore, was inaugurated by Union Home and Cooperation Minister Amit Shah.
This is India’s first cooperative sector CBG plant that uses multiple raw materials, including press mud, sugarcane bagasse, molasses, and agricultural residues. The plant provides a sustainable model for sugar mills, allowing them to generate clean energy while supporting sugarcane farmers with new income opportunities.
During the inauguration, Amit Shah announced that the National Cooperative Development Corporation (NCDC) would extend financial assistance to 15 additional sugar mills across India to establish similar CBG plants.
He highlighted that the initiative would reduce India’s dependence on imported potash and biogas, saving billions in foreign exchange annually. “This project will become a model for the entire cooperative sugar industry,” he added, emphasizing its role in promoting sustainable development.
The project is set to directly benefit thousands of farmers in the region. By selling sugarcane residue, straw, and other biowaste, farmers will generate additional revenue. Moreover, the plant will create new employment opportunities for rural youth.
With the potash produced locally, fertilizer costs for farmers are expected to drop by 20–25%, leading to better profit margins. The use of organic potash will also enhance soil fertility and boost crop yields, ensuring long-term agricultural sustainability.
The project perfectly aligns with Prime Minister Narendra Modi’s ‘Atmanirbhar Bharat’ and ‘Waste to Wealth’ initiatives. It showcases how agricultural residues can be converted into valuable energy and organic fertilizers, promoting both environmental sustainability and economic growth.
The government aims to set up 5,000 biogas plants across the country in the coming years. Such initiatives will help India achieve energy independence, lower carbon emissions, and support rural livelihoods through cooperative development.
The Ahilyanagar CBG plant is expected to significantly reduce environmental issues like stubble burning, as farmers will have a profitable way to dispose of crop residues. Reduced stubble burning will also help lower air pollution levels and carbon emissions.
Additionally, the biogas generated can be used as a clean fuel for vehicles and industries, offering an eco-friendly replacement for fossil fuels.
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The commissioning of India’s first cooperative multi-feed CBG plant marks a historic moment for the country’s green energy sector. By converting farm waste into clean fuel and organic fertilizers, the project not only empowers farmers but also strengthens the rural economy. It represents a sustainable model that combines energy security, environmental protection, and agricultural progress, paving the way for a cleaner, self-reliant India.