Chandigarh picks IOCL to build its first CBG plant at Daddumajra

In a major step toward sustainable waste management, the Chandigarh Municipal Corporation (MCC) would partner with Indian Oil Corporation Limited (IOCL) for the development of the city’s first segregated organic municipal solid waste-based compressed biogas (CBG) plant.

The project falls under the Government of India’s SATAT scheme, which promotes CBG production through oil marketing companies.

The proposal will be placed before the general house meeting of the MC on Tuesday. If approved, the facility will come up at the Daddumajra dumping site, marking a significant move toward reducing landfill dependency and promoting clean energy.

IOCL will be responsible for designing, financing, constructing, and operating the plant, bearing both capital and operational costs. Around 10 acres at the Daddumajra site have been earmarked for the project, and a concession agreement will be signed between MCC and IOCL for 15 years, extendable with mutual consent.

The plant will process nearly 200 tonnes per day (TPD) of segregated wet waste and 30 TPD of cow dung to generate CBG and useful by-products. MCC will provide the land at a nominal lease of ₹1 per acre and ensure a free supply of waste. Transportation costs for cow dung will also be borne by MCC. IOCL, on its part, will manage infrastructure, utilities, permits, and the sale of CBG, while ensuring compliance with environmental and safety standards.

The agenda also allows IOCL to expand the plant’s capacity during the concession period by adding bio-digesters as waste volumes rise. In addition, both parties will work together on community awareness campaigns to promote waste segregation at the source, ensuring a steady supply from hotels, markets, and other bulk generators.

As part of their joint responsibilities, MCC and IOCL will collaborate on the timely commissioning of the project and the development of a three-acre green cover near the site, funded by IOCL.