GAIL (India) Limited has been granted a significant land allocation by the Karnataka government for the establishment of a compressed biogas (CBG) plant, a move that bolstered the company's shares. 

The Karnataka Cabinet approved the allotment of 18 acres in Haralakunte village, Bengaluru South, for a period of 25 years on a 'Permissive Use' basis.

The new facility is planned to have an initial capacity of 300 metric tonnes per day (TPD), with the potential to be expanded to 500 TPD. 

This project is a key part of GAIL's larger national strategy to set up 26 CBG plants across the country with a total investment of Rs 1,300 crore.

The CBG plant will play a dual role in addressing Bengaluru's urban waste management challenges and contributing to the country's clean energy goals. It will utilize municipal solid waste to produce biofuel, reducing India's reliance on fossil fuels. 

This initiative aligns with the central government's "SATAT" (Sustainable Alternative Towards Affordable Transportation) scheme, which promotes the production of CBG from various waste and biomass sources.

The land handover will be jointly managed by the Revenue Department and Bengaluru Solid Waste Management Ltd.