MVK Agro to supply biogas to GAIL & MNGL

MVK Agro Food Product Limited has entered into a tripartite agreement with Maharashtra Natural Gas Limited (MNGL) and GAIL (India) Limited to supply biogas or compressed biogas (CBG) under the CBG–CGD Synchronisation Scheme.

In a mandatory regulatory disclosure filed with the National Stock Exchange (NSE), the company said the agreement enables the supply of biogas/CBG into the city gas distribution (CGD) network as part of the Centre’s initiative to integrate compressed biogas with existing gas infrastructure. As per reports, the financial value of the agreement has not been fixed and will be determined at the time of the actual supply of goods and services.

Based in Nanded district of Maharashtra, MVK Agro Food Product Limited is an integrated sugar and allied products manufacturer. The company operates a single sugar manufacturing unit with a licensed crushing capacity of 2,500 tonnes of cane per day (TCD). Alongside sugar production, it also commercialises and sells various by-products and waste-derived outputs such as molasses, bagasse and pressmud.

MVK Agro Food Product is additionally engaged in captive power generation to meet its internal energy requirements, leveraging by-products from its sugar operations. The latest agreement aligns with the company’s broader efforts to utilise agricultural waste efficiently while contributing to the production of clean and renewable energy through biogas and compressed biogas supply.

CBG–CGD Synchronization Scheme

MoP&NG has issued policy guidelines in 2021 for synchronisation of CBG produced by plants in CGD networks. GAIL has been mandated to operationalize the Synchro Scheme and supply Biogas/CBG co-mingled with domestic gas at Uniform Base Price (UBP) to all CGD entities for use in CNG(T) & PNG(D) segments of CGD network. In 2023, the scheme has been further extended by 10 years. It has been held that widespread access to CGD networks will bring demand centres close to CBG plants, thereby enabling a gas-based economy.

In 2023, the National Biofuels Coordination Committee (NBCC) mandated phase wise blending of CBG in CNG (Transport) & PNG (Domestic) segments of CGD sector. The CBG blending has been kept as 1%, 3% and 4% of total CNG/PNG consumption for FY 2025-26, 2026-27 and 2027-28 respectively.