The Chhattisgarh government has notified the Chhattisgarh Compressed Biogas (CG-CBG) Policy 2026 introducing a framework aimed at expanding compressed biogas (CBG) production by improving feedstock availability, streamlining project approvals and promoting investment in the waste to energy sector.
The policy, notified on July 10, will remain in force until March 31, 2030, and applies to both new and existing CBG projects. It seeks to utilise agricultural residue, cattle dung, municipal solid waste and industrial by-products to produce clean fuel while reducing pollution and creating additional income opportunities for farmers and rural communities.
According to state officials the policy focuses on strengthening the entire CBG value chain through measures covering feedstock supply, infrastructure development, regulatory facilitation, market integration and institutional coordination.
India currently has 1,862 registered CBG projects across 249 districts. However, only 211 plants are operational while 336 are under construction and 1,315 projects are yet to begin. In Chhattisgarh only three of the state’s 36 registered CBG projects are operational, with another three under construction.
To ensure a steady supply of raw material, the policy designates each district as a feedstock catchment area and limits the total registered biogas production capacity to 80% of the available feedstock within that district. District administrations may extend catchment areas to neighbouring tehsils if required.
The policy also assigns key roles to multiple departments and stakeholders. Farmer groups will be established to collect and store biomass while agricultural markets, sugar mills and the animal husbandry department will facilitate long term feedstock supply agreements with CBG plants. Agricultural waste procured through regulated markets will be exempt from mandi fees.
Urban local bodies will also play a larger role under the policy by entering into 25 year agreements with CBG plant operators for the supply of segregated municipal waste, providing a long term source of feedstock for biogas production.
To promote CBG consumption state plans to encourage the use of CNG based public transport, government vehicles, school buses and private transport fleets. It also aims to accelerate approvals for CNG stations and vehicle conversion kits.
The policy further provides for the marketing of organic manure a by product of CBG production, through existing fertiliser distribution networks while promoting its use among farmers through awareness programmes.
Implementation will be overseen by a state level committee headed by the Energy Secretary, with district level committees responsible for land allocation, coordination and project monitoring. The policy also establishes grievance redressal mechanisms at both district and state levels and requires CBG plants to regularly report operational data, including feedstock utilisation, gas production and organic manure output.
In addition the Chhattisgarh Biofuel Development Authority has been designated as the state’s research agency for the sector and will support research, innovation, workforce training and the development of new feedstock technologies.
While the policy addresses several operational challenges facing the CBG sector, it does not include mandatory procurement targets for city gas distribution companies, farmer equity participation in projects or dedicated land banks for biogas plants.