Muzaffarpur gears up for new CBG plant

A compressed biogas (CBG) plant will be developed in the Bariyarpur industrial area of Muzaffarpur, Bihar, after land was allotted to a Gujarat-based company for the project.

The Bihar Industrial Area Development Authority (BIADA) has allocated nearly six acres of land, measuring around 2,37,402 square feet, for setting up the CBG facility. The company has been directed to complete the installation of the plant within six months.

As per reports, the CBG project is expected to generate employment for around 250–300 people in and around the Bariyarpur area. Local farmers are also likely to benefit, as the plant will use agricultural residues and cattle dung as feedstock for producing compressed biogas.

The gas produced at the facility can be used for domestic purposes as well as a vehicle fuel, similar to compressed natural gas (CNG).

Apart from generating clean fuel, the project is expected to strengthen waste management practices and promote the use of renewable energy while reducing dependence on fossil-based CNG. It is also likely to be the first compressed biogas plant in North Bihar.

The state’s industries department had granted a no-objection certificate to the Gujarat-based company in December 2025 for setting up the plant.

Bihar has been working to expand its compressed biogas capacity. The state had planned to develop about 10 major plants by the end of 2025, though the target is yet to be fully achieved. The initiative is backed by investments of more than Rs 1,500 crore aimed at producing about 5 lakh tonnes of CBG annually.

Existing projects include a 22.5 tonnes-per-day plant in Madhubani and another at Nalanda University, highlighting the state’s growing focus on converting agricultural waste into energy.