Bihar cabinet approves new CBG Policy 2026 to boost bioenergy

The state government of Bihar has approved the Compressed Biogas (CBG) Production Promotion Policy, 2026 to accelerate biofuel production, improve organic waste management and strengthen the circular economy within the state. The upcoming policy seeks to promote CBG production using agricultural residues, animal waste, municipal solid waste, sugar industry press mud and other biodegradable feedstocks.

The cabinet meeting in which the approval was accorded was chaired by Chief Minister Samrat Choudhary. The cabinet cleared 44 proposals covering development and welfare initiatives.

The new CBG policy establishes a framework for promoting CBG projects while monitoring their registration, implementation, feedstock utilisation and production performance. As per Cabinet Secretariat Department Additional Chief Secretary Arvind Kumar Chaudhary, the policy will use a single-window portal and a compressed biogas Management Information System (MIS) to track project operations and the production of fermented organic manure (FOM) and liquid fermented organic manure (LFOM).

These organic by-products, generated during anaerobic digestion, can support agricultural nutrient management and reduce dependence on conventional fertilisers when appropriately processed and applied. By converting biodegradable waste into clean fuel and useful agricultural inputs, CBG plants can help address waste disposal challenges while creating additional value for farmers and industries.

The Bihar CBG policy will also be integrated with the Centre’s GOBARdhan (Galvanising Organic Bio-Agro Resources Dhan) and SATAT (Sustainable Alternative Towards Affordable Transportation) initiatives, aligning Bihar’s bioenergy development with national efforts to promote waste-to-energy solutions and alternative fuels.

Agricultural residues and animal waste offer opportunities to strengthen rural bioenergy supply chains, while municipal waste and press mud can provide feedstock for projects linked to urban waste management and sugar mills. Effective feedstock aggregation, reliable plant operations and markets for CBG and organic manure will be important for ensuring the long-term sustainability of these projects.

Separately, the cabinet approved the Bihar MSME Policy, 2026, targeting one crore entrepreneur families and one crore direct and indirect jobs over five years.