Refex Green Power to build Rs 65crore bio-CNG plant in Salem

Just as the quest for green energy generation is gaining momentum in the country, Refex Green Power Ltd (RGPL) has secured a significant contract worth Rs 65.07 crore to build a 200-tonne-per-day (TPD) municipal solid waste-based Bio-CNG plant in Salem, Tamil Nadu. The company is a wholly-owned subsidiary of Refex Industries.

The bio-CNG project is awarded by the Salem City Municipal Corporation under the Swachh Bharat Mission Urban 2.0. The construction of the facility will be executed through a Public-Private Partnership (PPP) under the Design, Build, Finance, Operate, and Transfer (DBFOT) model. The official statement of the Refex held that the contract has a tenure of 20 years.

As per the Letter of Acceptance (LoA) issued on March 28 and received by RGPL on April 1, the project is expected to be commissioned within 19 months of signing the Concession Agreement, which is set to be finalized within 30 days of the LoA issuance.

This Bio-CNG plant is part of Salem Corporation’s broader efforts to improve solid waste management and promote sustainable energy solutions. The Bio-CNG plant aims to enhance urban waste disposal while generating renewable energy.

Refex also clarified that the Bio-CNG project contract does not involve any related party transactions, confirming that neither the promoter, promoter group, nor any affiliated companies have any stake in the awarding entity.

Refex Renewables & Infrastructure specializes in engineering, procurement, and construction (EPC) services for ground solar power plants, solar water pumps, and home systems.

At the beginning of this year, I Am Renew reported that Salem City Municipal Corporation (SCMC) was planning to establish a Bio-Compressed Natural Gas (Bio-CNG) project on a site that is about 10-acres in size at Chettichavadi dump yard very soon with an investment of Rs 50 crore.

Tamil Nadu is advancing towards scientific waste management while embracing sustainable development. Recently, the Madurai Corporation submitted a ₹314 crore proposal to the Union Ministry of Housing and Urban Affairs (MoHUA) for establishing a waste-to-energy plant near the Vellaikal dump yard. Likewise, the Tiruchi City Corporation has announced plans to set up a ₹35 crore bio-CNG plant at the Ariyamangalam dump yard, capable of processing approximately 100 tonnes of organic waste per day.