Fadnavis announces India’s first integrated CBG project in Kolhapur

Maharashtra Chief Minister Devendra Fadnavis has announced plans to establish what he described as India’s first integrated compressed biogas (CBG) processing plant using waste generated by sugar mills in Kolhapur district.

Speaking at a farmers’ gathering in Kagal, Fadnavis said the proposed facility would follow a “zero-waste” model, converting sugar industry by-products such as spent wash and press mud into CBG and CNG.

The project is expected to provide sugar mills with an additional source of revenue by converting waste and other by-products into commercial fuel. Fadnavis said the additional earnings could strengthen the financial position of mills and support their ability to pay the Fair and Remunerative Price (FRP) to sugarcane growers.

Chief Minister Fadnavis stressed the need for the sugar industry to diversify beyond conventional sugar production and maximise the value of its by-products. He said such diversification would be important for the long-term financial sustainability of sugar mills and the farming community dependent on them.

Fadnavis also defended the Centre’s ethanol blending policy, calling ethanol production important for the survival of sugar mills and the interests of sugarcane farmers. He said the policy had helped mills remain financially viable and meet FRP obligations.

Addressing concerns circulating on social media that ethanol-blended petrol could damage vehicles, Fadnavis said petroleum companies and automobile manufacturers had not received official evidence substantiating such claims.

The announcement comes as sugar mills increasingly explore opportunities to monetise biomass and other production residues. By integrating CBG production with existing sugar and ethanol operations, the proposed Kolhapur facility could offer mills a new avenue to generate value from waste while supporting cleaner energy production.

Deputy Chief Minister Sunetra Pawar, Medical Education Minister Hasan Mushrif, Guardian Minister Prakash Abitkar and MP Shahu Maharaj also attended the gathering.