The state government of Gujarat has proposed an allocation of Rs 112 crore in the budget to promote Bio-CNG production across four zones of the state, expanding the role of cooperative societies beyond their traditional functions.
Presenting the Budget for 2026–27, Finance Minister Kanubhai Desai announced that Bio-CNG plants will be established through the cooperative sector. The initiative seeks to transform cooperatives into multi-purpose institutions engaged not only in agricultural activities but also in grain storage, infrastructure development and green fuel production.
The bio-CNG policy is expected to enable cooperative societies to diversify into processing cattle dung and organic waste to generate compressed biogas. By integrating storage facilities with energy production, the government aims to create new revenue streams for village-level institutions and strengthen rural economic systems.
The proposed Bio-CNG plants are expected to benefit livestock farmers by offering supplementary income through the sale of cattle waste. In addition, the initiative is likely to generate employment opportunities in rural areas, promote environmentally friendly transport fuel, and reduce reliance on fossil fuels.
By linking agriculture, dairy and renewable energy sectors, the state plans to foster a circular rural economy that aligns livelihood enhancement with clean-energy goals. The Rs 112-crore provision signals Gujarat’s push to position its cooperative movement at the centre of sustainable and value-added economic activities.
Gujarat & CBG
The biogas policy is supported by GEDA (Gujarat Energy Development Agency) through schemes like GOBARdhan and SATAT. The state currently has over 7,200 operational Gobar-Dhan biogas plants enhancing rural sustainability. Recently, Cooperatives Minister Amit Shah inaugurated a Bio-CNG and organic fertiliser plant at Vav-Tharad in Gujarat for Banas Dairy. On similar lines, NDDB, Banas Dairy and Suzuki have signed a tripartite agreement to develop a 75 MTPD biogas plant in Banaskantha.
Recently, Union Jal Shakti Minister CR Patil convened a crucial meeting with Chairpersons and MD’s of milk cooperatives and dairies from Gujarat to accelerate the development of CBG plants that will transform cattle dung and other organic waste into sustainable energy and organic manure.
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